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.