Returning your portfolio to its target asset allocation by selling outperformers and buying underperformers. If equity rises to 75% vs target 60%, sell equity and buy debt to restore balance. Typically done annually. Maintains risk level and forces disciplined "buy low, sell high" behaviour.
What is Rebalancing?
Returning your portfolio to its target asset allocation by selling outperformers and buying underperformers. If equity rises to 75% vs target 60%, sell equity a