Rebalancing is the process of periodically reviewing and updating the constituents of a smallcase. You can see the next expected update date on the smallcase page under the Stocks & Weights tab. This is done to ensure the stocks & weights in the smallcase continue to reflect the underlying theme and model
Rebalancing isn't done automatically. When a smallcase you hold has been rebalanced, you receive a Rebalance Update notification for the same via e-mail and push notification ( in the mobile apps) and you can simply apply it with just 2 clicks.
If you wish not to sell / buy any particular stock, you can edit the rebalance update as well before confirming the update. You can also skip the update, no worries - you'll still get the next rebalance updates until you exit.
Skipping a rebalance update, your smallcase holdings, composition & returns may vary from the original. Also, your smallcase will not reflect the underlying theme/model as intended.
Here's how you can apply the rebalance update:
To see the charges for Rebalancing - click here