Making adjustments to counteract the fact that different assets have performed differently and now comprise different percentages of the portfolio than they were intended to. For example, a portfolio with a high growth objective holding 20 percent of its assets in money market securities should consider rebalancing to hold fewer assets in money market securities and more assets in stocks or other higher risk instruments.
Related information about rebalancing:
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The rebalancing of investments is the action of bringing a portfolio that has deviated away from one's target asset allocation back into line. Under-weighted ...
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The process of realigning the weightings of one's portfolio of assets. Rebalancing involves periodically buying or selling assets in your portfolio to maintain your ...
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Jul 16, 2007 ... using a 50/50 US stock/bond portfolio, and found that annual rebalancing won in 52% of the 179 periods. Also, it seems to me, noise.
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