How To Rebalance Your Portfolio To Minimize Risk
If you’ve ever opened your investment account and seen that your asset allocation differs from what you previously set, know this is normal.
Over time, market movements naturally shift your asset mix, and the value of everything in your portfolio may change, drift, or take up a different percentage of your portfolio than intended.
If you’re experiencing this, it’s time to rebalance your portfolio. By buying or selling, you’re essentially realigning the weightings of assets to return to your desired asset allocation and level of risk exposure. Preventing portfolios from becoming too heavily weighted in one asset class or sector reduces vulnerability during market volatility.
Key Takeaways
- Rebalancing maintains your desired…
