What Does It Mean to Rebalance Your Portfolio?

What does it mean to rebalance your portfolio

Rebalancing your portfolio is an important strategy that helps keep your investments aligned with your long-term financial goals and risk tolerance. As markets fluctuate, the value of different asset classes in your portfolio—like stocks, bonds, and real estate—will rise and fall. Over time, some assets may become overrepresented, while others might become underrepresented. Rebalancing is …