@Sudhakar_Subramanian You are right. We will have to wait to see what these discount brokers are planning to do. Are they going to charge brokerage for buy only, sell only or both sides? How much will the brokerage be?
There are multiple ways of managing this.
- Change the rebalance frequency from weekly to fortnightly or beyond.
- Change the ranking (WRH - worst rank held) at which the stock is dropped from the pf. Example, in this 20 stock pf, the stock is exited if it falls below 25. Instead, we can keep it until it falls below 40 or 50 ranks. This is not uncommon. This will reduce the churn.
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