# Why rebalancing matters Rebalancing is the process of periodically adjusting the proportions of different assets in your investment portfolio. As the market moves, some investments may grow faster than others, causing your portfolio to drift away from your intended asset allocation. Over time, this can increase your exposure to risk and potentially undermine your financial goals. Regular rebalancing helps you maintain the right mix of investments in line with your risk tolerance and long-term objectives. By selling overperforming assets and buying underperforming ones, you bring your portfolio back into balance. This disciplined approach can help you manage risk more effectively and ensure that your investments continue to work towards your financial goals. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://academy.rebalancenow.io/general-information/readme/why-rebalancing-matters.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.