Asset Allocation Rebalancing Calculator
Use this calculator to determine what trades are needed to return your portfolio to its target allocation.
Rebalancing Actions
What Is Portfolio Rebalancing?
Portfolio rebalancing is the process of realigning the weightings of a portfolio of assets. Rebalancing involves periodically buying or selling assets in a portfolio to maintain an original or desired level of asset allocation or risk.
Frequently Asked Questions
Why is rebalancing important?
Over time, the value of different assets in your portfolio will change. Rebalancing helps you to control risk and ensure your portfolio does not deviate from your financial plan.
How often should I rebalance?
There is no single answer, but many financial advisors recommend rebalancing on a regular schedule, such as quarterly, semi-annually, or annually. You might also rebalance when your allocation drifts by a certain percentage.