The Art of Portfolio Rebalancing: Maintaining Optimal Asset Allocation
Investing in the stock market is an exciting and potentially profitable venture but comes with risks. As a wise investor, you know that diversification is critical to managing those risks and ensuring long-term success. However, more than simply creating a diverse portfolio is required; it’s important to rebalance your assets to maintain optimal allocation regularly.
In this article, we will dive into the art of portfolio rebalancing – what it means, why it’s crucial for investors at any level of experience, and how to approach the process effectively. Get ready to learn valuable insights on how aligning your investment proportions can help you weather market fluctuations and achieve financial goals.
What is Portfolio Rebalancing?
Portfolio rebalancing is adjusting the assets’ weightings to maintain its desired asset allocation. It means buying and selling assets within the portfolio to bring it back to its original or desired allocation.
It is done to …
Continue reading