Skip to main content

Posts

Showing posts with the label asset allocation

Portfolio Rebalancing: When and How to Adjust Investments

  Introduction Portfolio rebalancing is a critical investment strategy that ensures your asset allocation aligns with your financial goals, risk tolerance, and market conditions . Over time, market fluctuations can shift your portfolio composition, making rebalancing essential to manage risk and optimize returns . This guide explores why portfolio rebalancing is important, the best times to adjust your investments, and strategies to maintain a balanced portfolio . What You’ll Learn in This Guide: ✅ Why portfolio rebalancing is necessary ✅ When and how to rebalance your investments ✅ Best strategies for long-term portfolio management ✅ Common mistakes investors make when rebalancing ✅ Tools and automation for effortless rebalancing 1. Why Portfolio Rebalancing Matters A. Maintaining Your Target Asset Allocation ✔ Asset classes perform differently over time, causing imbalances. ✔ Rebalancing restores your original allocation, ensuring risk remains aligned with your goals . 💡 Example...