[{"data":1,"prerenderedAt":53},["ShallowReactive",2],{"term:rebalancing":3},{"term":4,"related":44},{"id":5,"title":6,"body":7,"category":27,"description":28,"extension":29,"faq":30,"meta":31,"navigation":32,"path":33,"related":34,"seo":37,"stem":38,"takeaways":39,"__hash__":43},"terms\u002Fterms\u002Frebalancing.md","Rebalancing",{"type":8,"value":9,"toc":22},"minimark",[10,15,19],[11,12,14],"h2",{"id":13},"understanding-rebalancing","Understanding Rebalancing",[16,17,18],"p",{},"As prices move, a portfolio drifts from its target allocation. Rebalancing sells what has grown overweight and buys what is underweight.",[16,20,21],{},"Investors rebalance on a schedule, such as yearly, or when an asset drifts past a set threshold.",{"title":23,"searchDepth":24,"depth":24,"links":25},"",2,[26],{"id":13,"depth":24,"text":14},"investing","Buying and selling holdings to bring a portfolio back to its target mix.","md",[],{},true,"\u002Fterms\u002Frebalancing",[35,36],"asset-allocation","diversification",{"title":6,"description":28},"terms\u002Frebalancing",[40,41,42],"Rebalancing restores a portfolio's target mix.","It keeps risk in line with your plan.","In taxable accounts, sales can trigger capital gains.","sAGglRQMDWF66G2-4o13qb2DN9IzjlfG_LcBvuAYXDk",[45,49],{"title":46,"description":47,"path":48},"Asset Allocation","How a portfolio is split across asset classes such as stocks, bonds, and cash.","\u002Fterms\u002Fasset-allocation",{"title":50,"description":51,"path":52},"Diversification","Spreading money across many investments to reduce the impact of any one loss.","\u002Fterms\u002Fdiversification",1793226379243]