Rebalancing Strategy

A rebalancing strategy is a method used in investing to maintain a desired mix of different types of assets, like stocks and bonds, in a portfolio. Over time, some investments may grow faster than others, causing the original balance to shift. Rebalancing involves periodically selling some of the outperforming assets and buying more of the underperforming ones to return to the intended allocation. This process helps to manage risk and can enhance long-term returns by ensuring that no single investment dominates the portfolio. It’s a way to keep your investment strategy aligned with your financial goals.