Portfolio Rebalancing

Portfolio rebalancing is the process of reviewing and adjusting a portfolio to ensure it remains aligned with an investor's investment goals and risk tolerance. This involves selling or buying securities to restore the original asset allocation and minimize exposure to risk. Rebalancing can be done periodically, such as quarterly or annually, or in response to changes in market conditions. In India, portfolio rebalancing is an essential strategy for investors seeking to manage risk and maximize returns over the long term.