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What happened
This article provides guidance on how to effectively rebalance your investment portfolio to maintain your desired risk levels and investment goals.
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Key insights
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1
Understanding Portfolio Rebalancing
Portfolio rebalancing involves adjusting the weights of assets in your investment portfolio to maintain your desired level of risk and to achieve financial goals.
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2
Frequency of Rebalancing
Investors should regularly review their portfolio, typically annually or semi-annually, to ensure it aligns with their risk tolerance and investment objectives.
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3
Methods of Rebalancing
Rebalancing can be done by selling over-performing assets and buying under-performing ones, or by adding new funds to under-weighted asset classes.