Portfolio Rebalancing limits exposure to assets by maintaining a desired percentage allocation.
This can be done on the Asset level or Stock level
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This can be done on the Asset level or Stock level
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Why Rebalance?
1⃣Limits your over/under exposure to assets in your portfolio
2⃣Keeps you within your desired risk profile
3⃣Healthy part of portfolio management
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1⃣Limits your over/under exposure to assets in your portfolio
2⃣Keeps you within your desired risk profile
3⃣Healthy part of portfolio management
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Factors to Consider
☑️Your target asset allocation
☑️Determine rebalance scheme (periodically or %)
☑️Determine reinvestment strategy
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☑️Your target asset allocation
☑️Determine rebalance scheme (periodically or %)
☑️Determine reinvestment strategy
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How to Rebalance
1⃣Sell assets/stocks above target allocation
2⃣Buy assets/stocks below target allocation
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1⃣Sell assets/stocks above target allocation
2⃣Buy assets/stocks below target allocation
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Full details on the process of Portfolio Rebalancing in this video:
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