What is rebalancing?
Rebalancing is the process of periodically reviewing smallcases by their creators. It ensures that the smallcase continues to reflect the original idea. You should review & apply the update as you receive them.
In essence it is the process of reviewing the stocks/ETFs & their weights of a smallcase to ensure that it remains true to the theme or strategy. Rebalancing takes into account quarterly earnings, company news & updates, etc and uses proprietary algorithms to objectively narrow down on the right set of stocks.
Video Link: https://youtu.be/qhkPw88g4Z8