Everything you need to know about Power Rebalancing 

How do we pick the right switches?
Why do we skip some funds?
What’s the method behind it all? We’ve answered it here.

📌 Elite members who joined before 15th Aug can now access their plan.

📌 Members who’ve joined us post 15th Aug – your plan should be ready early September.

⚡️Note: If you joined the app before 15th Aug, you can become an Elite member and access your rebalancing plan right away.

Q1. What is Power Rebalancing?

Power Rebalancing gives you a completely personalized plan to switch from lagging funds in your portfolio to the top-ranked funds. The recommended switches are within the same category and optimised for tax and exit load.

You will only receive a rebalancing plan only if we have identified an opportunity in your portfolio which can help you improve your returns meaningfully.

Q2. Why should I trust the recommendations made?

We are a SEBI-registered RIA (Registered Investment Advisor). We do not earn any commissions from mutual fund houses which means our advice is completely unbiased and built entirely around what’s best for the user.

Our recommendations are built by in-house experts and research analysts on 20+ years of data and thoroughly backtested before that is made available to you.

Note : We understand past success of backtesting doesn’t guarantee future returns, and neither do we. Rest assured, we are actively monitoring your portfolio with our proprietary rating engine built by our experts, to give the best possible results on your investments. We do the hard work, so you don’t have to.

Q3. Is the rebalancing plan based on past returns or future potential?

Rebalancing plans are made using PowerUp’s proprietary fund rating and ranking model.

Our fund rating and ranking model is designed to help investors effortlessly gauge how well a fund is working right now and how confidently it can be held for the future.

Built by a highly qualified team of experts and fund analysts using 20+ years of mutual fund performance data we evaluate every fund in a category on following parameters:

• Long term Consistency (via rolling returns)

• Volatility (risk measured in various market conditions via standard deviation and downside capture ratio)

• Recent performance trends (via recent performance)

Post this every output is manually validated and fine tuned by our experts to factor on forward-looking factors like:

• Fund manager track record or changes

• Fund strategy updates

• Fund composition changes

Our final recommendations are thoroughly back-tested to add maximum value for our users. Backtested results show that our recommendations on rebalancing deliver better returns.

Q4. What are missed gains?

Missed gains represent the extra returns you could have earned if your money had been invested in the top ranked funds within the same category.

We identify better-performing (from the top ranked funds) alternatives that have consistently outperformed your current fund and compute the difference in INR over the same time period.

That difference is what we show as your “missed gains.”

Missed gains is completely data backed and a very exhaustive metric to quantify the lost opportunity of staying invested in a lagging fund.

Q5. How does PowerUp calculate missed gains?

We simulate your actual investment journey – every SIP, withdrawal, and holding period – and apply it to top-ranked funds in the same category. Then, we compare the current value of your fund with the value of the best-performing alternative.

The difference is what we show as “missed gains.”

Missed gains is completely data backed and a very exhaustive metric to quantify the lost opportunity of staying invested in a lagging fund.

Note: We understand past success of backtesting doesn’t guarantee future returns, and neither do we. Rest assured, we are actively monitoring your portfolio with our proprietary rating engine built by our experts, to give the best possible results on your investments. We do the hard work, so you don’t have to.

Q6. Why is the Power Rebalancing limited to the same category of mutual funds?

Changing categories = changing risk. Power Rebalancing plan isn’t about changing your risk profile, it’s about helping you maximize your returns with similar risk.

Note: We will help you optimize your overall portfolio mix separately through Power Allocation (coming soon for Elite members).

Q7. Why have I not received a rebalancing plan for some of my funds?

We only recommend a switch when we see a clear opportunity to improve your portfolio returns meaningfully. Some common reasons why rebalancing may not be recommended:

1. Recent investment (<1 year): There isn’t enough performance data yet to make a reliable switch recommendation.

2. Unrated funds on PowerUp: Certain funds (if too new), categories (with <4–5 funds), or non-equity asset classes are currently not rated.

Note: PowerUp ratings and rankings for Hybrid, Debt, and Solution-oriented funds are launching soon.

3. Your fund is doing well: If the fund is performing well, we want compounding work in your favor instead of disturbing it.

4. Tax/exit load impact: If short-term capital gains (STCG) and/or exit loads outweigh the benefit of switching, we don’t recommend a switch unless absolutely necessary – like in the case if you are holding an Out-of-form Fund.

5. ELSS lock-in: We don’t recommend switches on ELSS investments until they are eligible after the lock-in period.

6. Index funds: Returns can differ by almost 1–2% across index funds in a category, which is meaningful. But we currently don’t include them in Power Rebalancing focusing on bigger impact opportunities.

Q8. How often will PowerUp provide such rebalancing suggestions?

Power Rebalancing plans are provided every quarter. This is to ensure your portfolio is always in top-form.

Please note, you’ll receive a rebalancing plan only if we have identified opportunities in your portfolio – where better-performing(from the top ranked funds) alternatives can help you improve your portfolio returns meaningfully.

Our quarterly reviews ensure your portfolio is actively monitored, so we can proactively catch early signs of degrading performance or risk.

Q9. What do the risk profiles mean?

Your risk profile helps us understand your comfort with risk so we can help you strike the right balance between risk and returns in your portfolio. Here’s what each level means:

• Very Aggressive
  You’re comfortable with very high risk and large ups & downs in the short term, aiming for the highest possible long-term returns.
  

• Aggressive
  You’re okay with taking higher risks for potentially higher returns. You can handle short-term volatility without worrying much.

• Conservative
  You prefer low risk, steady growth, and protecting your money as it grows.

• Balanced
  You want a balance of growth and stability. You prefer a balance of risk and returns, but with enough cushion for peace of mind.

• Very Conservative
  Your priority is safety and capital protection. You want minimal risk, even if it means lower returns.

Q10. What does SWP switch mean?

SWP is a Systematic Withdrawal Plan. Instead of withdrawing everything at once, we suggest setting up a SWP to gradually withdraw your investment and reinvest it into the recommended fund. This is done to spread out the capital movement to avoid market timing risk and/or high STCG tax implications.

Q11. In some scenarios I only see a switch recommendation on my SIP and not my full investment. Why is that?

If your fund is not performing well and you have an active SIP going but the case for switching the investment is not strong enough (maybe due to high exit load, tax implications, or lack of a significantly better alternative). In such cases, we suggest you move your SIPs to a top-ranked fund, so your new investments compound well – like in the case if you are holding an Off-track Fund with an active SIP.

This way, you avoid unnecessary costs while still driving your portfolio in the right direction.

Q12. What does “high exposure” mean?

As a thumb rule, no single fund should dominate your portfolio.

If a single fund accounts for >20% of your portfolio, it creates a big concentration risk and your portfolio returns are overly dependent on one fund house, one fund manager and one investment strategy.

We strongly suggest diversifying into multiple funds of the same category to reduce your concentration risk.

Q13. Will I have to pay any tax while rebalancing funds?

All mutual fund investment profits are taxable in India. So you will incur capital gains tax when making a switch as per the rebalancing plan in case you have made any profits.

Power Rebalancing recommendations are optimized to reduce capital gains tax.

We aim to minimize your tax impact by reducing short-term capital gains (STCG) and favoring long-term capital gains (LTCG) wherever possible. In case we make a switch recommendation which has a STCG then rest assured – we only recommend it when the potential benefits clearly outweigh the tax cost.

Q14. Will there be an exit load if I make this switch now?

Power Rebalancing recommendations are optimized to minimize Exit Load.

We aim to minimize your exit load and recommend such switches only and only when the upside clearly outweighs the exit load payable.

In case the recommended switch will have an exit load implication, you will be able to see it clearly mentioned in your rebalancing plan, so you can make a fully informed decision before taking any action.