Rebalancing: keep your investments on track
You chose 80% shares, 20% bonds. After a great year, it's 88/12. You're now taking more risk than you signed up for.
The simple version
Rebalancing means moving money back to your chosen mix, usually once a year or when it drifts by more than about 5 percentage points. It means trimming what's grown and topping up what's fallen. Many all-in-one funds do it automatically.
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