What is rebalance and why is it important?

What is rebalance and why is it important?

Rebalancing is the act of adjusting your portfolio’s asset allocation to maintain the desired risk-return level. This is important because some investments may outperform others over time, thus causing your portfolio to drift from its target allocation. This can expose your portfolio to unwanted risk or less reward potential than desired. Regular rebalancing helps you stick to your financial goals and investment strategies.

Using a platform like smallcase can help you rebalance your asset allocation by monitoring your portfolio through its interactive interface. This will help you keep track of data and make informed decisions while executing trades efficiently.