The process of changing the investment holdings in a portfolio in order to return its composition to a desired investment mix.
The process of selling certain asset classes and buying others so that the portfolio is allocated according to its target allocation. For example, if a portfolio is supposed to have 40% in bonds and 60% in stocks, but due to market moves, it is now at 30% in bonds and 70% in stocks, a rebalance would cause us to sell 10% out of stocks and buy 10% in bonds to bring it back to 60% stocks, 40% bonds. This discipline forces one to buy low and sell high, the opposite of what most investors intuitively do.
Returning a portfolio to its asset allocation targets by buying and/or selling securities. Rebalancing forces an investor to "buy low and sell high", and is contrarian in nature.
buying and selling asset classes and divisions of asset classes to achieve a target allocation
Adjusting a portfolio, through fund transfers or sales or purchases, to re-establish the initial allocation of assets.
Realigning the proportions of assets in a portfolio as needed.
Rebalancing is the process of reallocating the investment holdings in a portfolio in order to return the composition of the portfolio to its original investment mix by asset class, sub-asset class, sector, industry, etc.
adjustments made in your asset allocation to counteract the fact that some assets have performed differently and now comprise different percentages of the portfolio than they were intended
The process of realigning the weightings of one's portfolio of assets.
The process of adjusting portfolio assets back to their original levels, in response to market movements.
As investments grow at different rates over time, an asset allocation can drift out of balance. This drift can increase the likelihood that your investments will not meet your expectations. Rebalancing is the process of returning your portfolio to its proper allocation by shifting money among asset classes.
Rebalancing is the action of bringing a portfolio of investments that has deviated away from one's target asset allocation back into line. Under-weighted securities can be purchased with newly saved money; alternatively, over-weighted securities can be sold to purchase under-weighted securities.