Questions about rebalancing behaviour for pies

šŸ„§ Pies & AutoInvest
1

I have a question about the pie feature that I am thinking to start using.

  1. Does it by default rebalance my pie by selling some stocks to keep the percentages correct? Or is it aware of the targets so instead of selling existing stocks it just buys on new investments according to the current percentages?
  2. Finally how does the pie behave if you turn on / click on the ā€œRebalanceā€ button? What happens then?

My goal is to not have any automatic sells and to have the pie automatically buy less or more of new stocks in accordance with my percentage targets.

2
  1. It will rebalance when you click the rebalance button. If you do, it will buy and sell shares/units of the instruments in order to meet your % allocation for each one
  2. It will show you the stocks it will buy/sell and how much of it itā€™s buying/selling in order to meet the % allocation
    For example:
    Image 21-09-2020 at 15.10
    Image 21-09-2020 at 15.10696Ɨ725 62.8 KB
3

But if I never click rebalance button it will auto-buy to meet the target pie percentages? My goal is to hold longer than 2 years so I donā€™t do any selling and hold for the long-term.

4

If you never click rebalance then it wonā€™t auto-buy or auto-sell to meet the target percentages

5

By default it uses the target weightings.

It rebalances your holdings according to the target weightings. Normally you use the rebalance option once a year or so. Or if you manually deposit funds into you pie, you can choose to buy shares based on rebalancing.

6

The best thing is to ā€¦ play around in the practice account so you can see it for yourself. Itā€™s pretty straight forward and intuitive once you get the grip. Practice account is great also for testing this kind of stuff. :+1:

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