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Why Is Rebalancing Important To My Asset Allocation?

Answer»

The market may move up and down in different situations, which is QUITE natural. The MAIN reason for REBALANCING is to protect the current equity valuation when the market rise and buy equity when the market fall based on the market conditions. If you apply this strategy, you might achieve your goal before the actual time. Rebalancing your PORTFOLIO on a regular basis maintains the desired return in your INVESTMENT strategy - it is one of the important key for effective risk management.

The market may move up and down in different situations, which is quite natural. The main reason for rebalancing is to protect the current equity valuation when the market rise and buy equity when the market fall based on the market conditions. If you apply this strategy, you might achieve your goal before the actual time. Rebalancing your portfolio on a regular basis maintains the desired return in your investment strategy - it is one of the important key for effective risk management.



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