I do that as well and it is a great idea ...
I am talking about owning different funds in the exact same class that perform very differently over time. For instance, I owned a growth stock that was pretty highly rated (4 stars on Morningstar) but I was able to buy a 5-star fund that has outperformed mine by 4% over the past 3 years and 6% over the past 5 years. So my asset allocation didn't change at all but statistically I should get better performance results.
But your scenario is also very important. If you ignore it, you will find yourself way overweighted in the stuff that is performing well and if your goal is to sell high and buy low then you should rebalance regularly.
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In response to this post by Hungry Joe)
Posted: 10/27/2021 at 3:04PM