Investing & Markets

Own assets that compound

Novice

Mastery0%

Novice

Note. Education, not financial advice. Past performance doesn't guarantee future returns. For real money decisions, talk to a SEBI-registered advisor whose incentives don't depend on selling you a product.

Concept 10 of 21

framework

Rebalancing

Trim what won, top up what lagged, so your risk stays where you set it.

Definition

Periodically selling assets that have grown above your target weights and buying those that have fallen below, to return the portfolio to its planned allocation.

Step 1

Predict first

In one or two sentences, what do you think this concept means? Wrong is fine; the small struggle is what makes the answer stick.