Rebalancing is the process of realigning the proportions of assets in a portfolio to maintain a desired risk level and investment strategy. It involves selling high-performing assets and buying underperforming ones. Investors should consider rebalancing periodically, such as quarterly or annually, or when asset allocation deviates significantly from their target percentages.

What is rebalancing and when should I do it?

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What is rebalancing and when should I do it?

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