Skip to content
Investment

Rebalancing

Also known as: Portfolio Rebalancing

Periodic adjustment of portfolio to maintain target asset allocation by buying/selling assets.

Detailed Explanation

Rebalancing is the process of realigning the weightings of a portfolio of assets by periodically buying or selling assets to maintain your original desired level of asset allocation. This ensures you 'buy low, sell high' mechanically and maintain your risk profile over time.