The process of realigning the weightings of an asset portfolio is known as rebalancing. Rebalancing is purchasing or selling assets in a portfolio on a regular basis in order to preserve the original or targeted level of asset allocation or risk.
Assume your initial asset allocation goal was 50% equities and 50% bonds. If the stocks fared well throughout the time, the portfolio’s equity weighting may have been boosted to 70%. The investor may then elect to sell some stocks and purchase bonds to return the portfolio to its original 50/50 target allocation.
You are looking for information, articles, knowledge about the topic Automated Investing Essentials on internet, you do not find the information you need! Here are the best content compiled and compiled by the achindutemple.org team, along with other related topics such as: Trading.