Investing Basics
Intermediate
Rebalancing
💡 In plain English: Periodically adjusting your portfolio back to your original target split after market movements shift it.
Definition
The process of realigning the weightings of portfolio assets by buying or selling to maintain your original desired level of asset allocation.
📌 Real-World Example
Your target is 70% equity / 30% debt. After a bull market, equity has grown to 85%. You sell some equity and buy debt to return to 70/30.
Try it yourself
Use the Net Worth Tracker to see this concept with your own numbers.
Related Terms
⚠️ Educational Content: All definitions and examples on this page are for educational and consultancy reference purposes only. They do not constitute financial, legal, or investment advice. Moneykar is not registered with SEBI, CBUAE, SCA, or any financial regulator. Consult a qualified professional before making financial decisions.