improved
Improved Rebalance
Rebalance has a new home in the right-side menu!
The focus of Rebalance 2.0 is to allow for setting and resetting asset allocation. Much like an investor would hope to stick to a 60% stock and 40% bond portfolio, we want to make sure Pluto investors can set and reset their strategies to specific allocations. This idea led to the first major change in that the rebalance view will show you each strategy in your portfolio, as well as its approximate percentage weight in the portfolio.
When rebalancing, you can either deposit into a strategy by pulling from the pool of remaining cash, or you can withdraw from a strategy which will direct the funds into the pool of remaining cash. You can do both of these in conjunction to effectively move money from one strategy to another.
There are 3 actions we thought might be useful to users to do quickly.
- Equalize All: Equalize all will take the total amount of money in each strategy and in the remaining cash and distribute it as evenly as possible between all active strategies.
- Equalize W/O Cash: Equalize w/o cash will take all of the money within each strategy, ignoring the remaining cash, and distribute it as evenly as possible between each active strategy.
- Sell All: Sell all simply sells everything in each strategy and moves all the money into the portfolio's remaining cash.
Each of these items can also be used as a jumping off point, in which you can select one of the actions, such as Sell All, and then move the money among whichever strategies you choose.
Finally, there are some small limitations with the Rebalance:
- The percentages are an approximation, which can lead to numbers that seem a little off. For instance, the cash in one of the images above says it is 0%, but there is still $1.17 remaining. This is due to the percentages of the items above being rounded, and to ensure that you are not able to deposit more total money than you actually have.
- Rebalances are always an approximation. If you choose to withdraw money from a strategy, there is no way to guarantee the exact amount from selling securities inside of that strategy. As a result, the estimated trades as well as estimated resulting balance are just that: estimations. However, we try to get as close as possible.