Personal Finance
Rebalancing
pronounced: [R-e-b-a-l-a-n-c-i-n-g]
The process of realigning the portfolio back to the target asset allocation by selling over-performing and buying under-performing assets periodically, typically annually or when allocation drifts beyond thresholds.
Key Facts
| Fact | Value |
|---|---|
| Interest Compounding | Annually |
Frequently Asked Questions
Related Terms
Last updated: 21 May 2026