The Art of Portfolio Rebalancing: Maintaining Optimal Asset Allocation
In the dynamic landscape of investments, the art of portfolio rebalancing emerges as a strategic practice to ensure optimal asset allocation. This comprehensive guide aims to unravel the intricacies of portfolio rebalancing, shedding light on its importance, strategies, and the evolving trends in the investment arena.
Understanding Portfolio Rebalancing
Portfolio rebalancing involves adjusting the mix of assets in an investment portfolio to maintain the desired risk-return profile. It is important to preserve the intended asset allocation, align the portfolio with financial goals, and manage risk effectively. Optimal asset allocation is the cornerstone of successful investing. It helps investors strike the…