Asset Allocation & Risk

What is rebalancing?

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Rebalancing means bringing a portfolio that has drifted from its target weightings because of market movements back to the originally planned asset allocation.

It can be done by selling some of the assets whose weight has grown and buying those whose weight has shrunk, or by allocating new money to the underweight assets. The goal is not to chase returns but to maintain the level of risk you originally set.

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This answer is general financial information as of 2026-10-14, not investment advice. Rules and tax rates change, so please also check the latest guidance from the source institution.