I wrote an article on allocating and rebalancing your portfolio around 2 months ago. In this article, I like to take a deeper dive into the rebalancing aspect and explain a bit more on the various aspects of rebalancing your portfolio. Now firstly, I believe most of us probably briefly understand what rebalancing your portfolio means. Some aspects of your portfolio probably goes out of the norm which you have set, and you decided to take corrective actions to reassign the correct weightage to various components in your portfolio. What is probably not so clear/obvious to most people is that rebalancing does not always necessarily mean increasing your returns. Yes, you heard it right. An unbalanced portfolio could potentially provide you better returns than a rebalanced portfolio. Imagine you have 60% of your portfolio in equities and 40% of your portfolio in bonds, and you happen to be in the...