If you have an investment portfolio, it’s important to understand the concept of rebalancing and how to do it correctly. Rebalancing is the process of returning your portfolio to its original asset allocation mix. There are a few reasons why you might want to rebalance: to maintain your desired risk level, to take profits in winning investments and redeploy them into weaker ones, or to restore your original target asset allocation after experiencing large market movements. In this guide, we will teach you everything you need to know about rebalancing your portfolio! What is portfolio rebalancing? Portfolio rebalancing is the process of bringing your asset allocation back in line with your original investment goals. This usually involves selling some assets that have increased in value and using the proceeds to buy other assets that have not performed as well. For example, let’s say you invest in a portfolio of stocks...