Portfolio rebalancing is a crucial strategy that helps investors maintain their desired asset allocation over time. As market conditions change, the value of various assets in your portfolio may shift, leading to an imbalance. Regular rebalancing ensures that your investments remain aligned with your financial goals and risk tolerance.

Portfolio rebalancing involves periodically buying or selling assets to return your portfolio to its target allocation. This process helps mitigate risk and optimize returns by ensuring that your investments are not overly concentrated in any one asset class.

Types of Portfolio Rebalancing:

• Calendar-Based Rebalancing:
• Threshold-Based Rebalancing:
• Hybrid Rebalancing:

Features of Portfolio Rebalancing:

• Risk Management:
• Cost Efficiency:
• Discipline:
• Optimization of Returns:

Regular portfolio rebalancing is essential to keep your investments on track. By choosing a strategy that suits your needs, you can manage risk and work towards achieving your financial objectives with confidence.