Applying a rebalance update doesn't affect your total P&L. Your total P&L before and after rebalance remains the same. Let’s understand it with a very simple example.

Suppose you invested Rs 100 in Stock A. After 3 months the value of your investment increased to Rs 120. This is how your P&L summary will look. 

Investment Overview Before Rebalance:

Now you decide to sell Stock A and Buy Stock B. You will get Rs 120 when you sell Stock A. At this point Rs 20 moves from your current P&L to realized P&L. But the the total return which is the summation of realized and current P&L, remains the same. This is how your P&L summary will look like once you complete the transaction.

Investment Overview Before Rebalance:

The same would happen when you rebalance your smallcase. You sell few stocks and buy few stocks, but your total P&L more or less remains the same. Learn more 

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