Do fund managers of balanced funds book profit often to rebalance the allocation planned originally?
This varies depending on the investment style of the manager. You can look at the fund turnover rate to get an indication of the trading style of any particular fund. Following is a link to a comparison between Vanguard Balanced Index and Vanguard Wellington. 50% and 30% turnover rates respectively. https://personal.vanguard.com/us/funds/v… The next link is to the Janus Balanced Fund with a turnover rate of 109% indicating much more active management. https://ww3.janus.com/Janus/Retail/FundH… The turnover rates offer clues to the answer to your question, but are blurred by many factors. While some of the activity is certainly rebalancing to the planned allocation, other activity is buying and selling securities within an asset class and may not be rebalancing activity. Much research has suggested that
