@duvvurib i will try and clarify using the same numbers.
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We start with Rs 5 each for 20 stocks.
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At the end of week 1, one stock falls to Rs 4. Assume another stock goes to Rs 6.
At the time of rebalance,
We allow the winners to ride and therefore, do nothing to the stock that has gone to Rs 6.
The weakest stock at Rs 4 is replaced with another stock that comes in at valuation of Rs 4.
The value of the pf does not change before and after rebalancing.
If I have additional money to invest, I will try and get all stocks back to 5% allocation as closely as possible; doing this without selling the Rs 6 stock.
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