A.I.M. Users Bulletin Board

[AIMster]

Say I want to rebalance funds...

Good day. I've recently become acquainted with Mr. Lichello's book and work - just a darn shame I didn't know of it a few years ago. However, no time like the present to start, eh?

One issue that was indirectly referred to in the book but for which I'd like some input from other AIM people is this:

Say I have three funds working along in one AIM account. Fund A is worth $4300, fund B $4600 and fund C $7000. Say I want to rebalance so that the funds are all equal in value as I think fund C is overweighted. I understand stocks can be bought-and-sold as long as the value is maintained. What, in this instance happens to the Portfolio Control amounts? Does one increase PC for funds A & B by the 100 % of the amount derived from the partial sale of fund C? (This seems right as doing so keeps the same perspective of PC vs actual value that the funds had before the new purchase. But what happens to the PC value of fund C? Is it left alone to whatever the original purchase value was or is it decreased to the value remaining after the sale?

Thanks in advance.