Rebalancing

Knowledge Center

12manage is looking for students!





Description of Rebalancing. Explanation.

 

Definition Rebalancing. Description.


Rebalancing is the investing process of realigning the weightings of a portfolio of assets to a target asset portfolio composition. Under-weighted securities can be bought and added with cash; alternatively, over-weighted securities can be sold and decreased to purchase under-weighted securities.


Institutional investors often have a long-term investment strategy which is based on holding a certain mix of stocks, bonds, options, futures, other investments and cash. Suppose that due to a price increase of the bonds, its size in the total portfolio increase. This would then require to rebalance the portfolio in order to restore the equilibrium.


The time interval for a rebalance could be anything between a year for private investors to quarterly or even daily for large institutional investors. Alternatively it can occur when the portfolio is more than a certain percentage off target. A simple way to decrease the need for rebalancing is by using index funds or mutual funds.


Special Interest Group - Rebalancing


Special Interest Group (2 members)


Forum - Rebalancing  

Here you will find interesting and educational discussions.


  Quotes on Rebalancing. Quotations
Hi, do you know of a remarkable, humorous quote by a famous ...
 
 
 
 

Best Practices - Rebalancing

Here you will find the most valuable ideas.



Expert Tips - Rebalancing

Here you will find high-quality advice from experts.



Resources - Rebalancing

Here you will find powerpoint presentations, micro-learning videos and further information sources.


 

News about Rebalancing


     
 

Videos about Rebalancing


     
 

Presentations about Rebalancing


     
 

Books about Rebalancing


     
 

More about Rebalancing


     

Compare with: Capital Asset Pricing Model  |  Asset Management

Special Interest Group Leader

You here? Sign up for free


 
 

Return to Management Hub: Finance & Investing


More on Management  |  Return to Management Dictionary  | 

 

This ends our Rebalancing summary and forum.



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2019 12manage - The Executive Fast Track. V15.1 - Last updated: 16-9-2019. All names of their owners.