Rebalancing your portfolio is a key part of maintaining your desired asset allocation and managing risk over time. It involves adjusting the proportion of different assets (e.g., stocks, bonds, cash) in your portfolio to match your original investment strategy.
Why Rebalancing Is Important:

Maintains Risk Tolerance:

Over time, certain assets may perform better or worse than others, causing your portfolio to drift away from its original allocation. For example, if stocks perform well, their share of your portfolio may increase, exposing you to more risk than you initially planned.
Rebalancing helps keep your portfolio in line with your risk ...