rebalancing investments
noun phrase
Pronunciation: /ˌriːˈbælənsɪŋ ɪnˈvɛstmənts/
Definition
The process of adjusting the allocation of assets in an investment portfolio to maintain a desired level of risk and return, often by selling assets that have grown and buying those that have underperformed.
Examples
Many financial advisors recommend rebalancing investments annually to stay on track with long-term goals.
After a strong bull market, rebalancing investments might involve selling some high-performing stocks to buy more bonds.
How to Use rebalancing investments
- annual rebalancing investments (collocation)
- Adjusting a portfolio once a year. — "She performs annual rebalancing investments to keep her portfolio aligned with her goals."
- strategic rebalancing investments (collocation)
- Adjusting a portfolio based on a specific strategy. — "His approach to strategic rebalancing investments involves setting target percentages for each asset class."
- automatic rebalancing investments (collocation)
- Adjusting a portfolio automatically through a platform or algorithm. — "Many robo-advisors offer automatic rebalancing investments for their clients."
Synonyms of rebalancing investments
Words with a similar meaning to rebalancing investments:
Browse the full Anaversity dictionary