Definition
What is Rebalancing?
Rebalancing means periodically buying and selling holdings so your portfolio returns to its target asset allocation. If equities surge 30% while bonds stay flat, your 60/40 drifts to 70/30 — you then sell equities and buy bonds to restore 60/40. Forces "buy low, sell high" mechanically. Do it annually or when any band drifts 5+ percentage points.
Calculators