Rebalancing

Rebalancing is a way for an investor to stay on track of investments. This process requires the adjustment of your assets periodically so that your target allocation would be met.

Monitor your investments

Markets often change, so it is very important to look over your investments from time to time in order to make sure that you are maintaining your intended asset allocation with your cash, bonds and stocks. Should the value of the stocks you have in your portfolio increase, for example, then the ratio of these stocks to your bonds could also change. You could then end up with a greater amount of risk than you may realise.