investing
rebalancing
The process of realigning the proportions of assets in a portfolio to maintain a desired level of asset allocation.
Example
"She rebalanced her portfolio annually, selling stocks that had grown too large and buying bonds."
💡 Memory Tip
RE-balancing — you RESTORE BALANCE. When one investment grows too large, you trim it back.
Etymology
Re (again) + balancing — restoring balance to a portfolio.
Common Misspellings
rebalancingrebalenceingreballancingrebalansing
Related Terms
See Also
asset allocation