Rebalancing

Rebalancing brings a portfolio back toward its intended mix.

Portfolios drift

When one part of your portfolio rises faster, it becomes a bigger percentage of the total. Over time, your risk can quietly move away from the plan you chose.

Resetting the mix

Rebalancing means adding to underweight areas or trimming overweight areas to return toward your target. It is a rule-based way to manage risk, not a forecast.

Avoid overdoing it

Many investors rebalance on a schedule or when their mix moves far from target. Frequent trading can create costs and taxes in real accounts.

Continue with Long-Term Investing lessons.

For education only. Quoliv uses fake money and does not provide personal financial advice.