Rebalancing is adjusting investments to match the desired asset allocation. As investments change in value, the portion allocated to each type of investment can move away from the desired allocation. For example, if your target allocation was 70% stocks and 30% bonds and stocks performed well, your allocation might become 80% stocks and 20% bonds. We rebalance your portfolio by selling some stocks and buying some bonds such that your allocation is the target of 70% stocks and 30% bonds.
