Portfolio rebalancing
Portfolio rebalancing involves adjusting the weights of different assets in your portfolio to maintain your desired level of risk and return.
Over time, the value of assets can change due to market performance, causing your portfolio to drift from its original allocation. Our asset managers rebalance your portfolio whenever an asset class deviates from its target allocation adjusting the weights of different assets to maintain your desired level of risk and return. For example, if your target allocation is 60% equities and 40% bonds, we rebalance if equities exceed 65% or drop below 55%.
- Maintain Risk Levels:
Rebalancing ensures your portfolio stays aligned with your risk tolerance. For example, if stocks perform well, they might take up a larger portion of your portfolio, increasing your risk.
- Lock in Gains:
By selling assets that have increased in value, you can lock in gains and reinvest in underperforming assets, potentially buying them at a lower price.
- Significant Market Movements:
If there are large market shifts, it might be a good time to rebalance.