Rebalanseerimist

Rebalanseerimist, often translated as rebalancing, is a fundamental investment strategy that involves adjusting an investment portfolio to maintain a desired asset allocation. Investors typically decide on a target mix of different asset classes, such as stocks, bonds, and real estate, based on their risk tolerance, financial goals, and time horizon. Over time, the performance of these asset classes can cause the portfolio's allocation to drift away from its original targets. For example, if stocks perform exceptionally well, they might grow to represent a larger percentage of the portfolio than initially intended, potentially increasing overall risk.

Rebalanseerimist addresses this drift by periodically buying or selling assets. When an asset class has grown beyond its target allocation, the investor sells some of it to purchase assets that have fallen below their target. Conversely, if an asset class has underperformed and now represents a smaller portion of the portfolio, the investor buys more of it with funds from overperforming assets. This process helps to bring the portfolio back into alignment with the investor's strategic plan.

The benefits of rebalanseerimist include risk management by preventing any single asset class from becoming disproportionately dominant and potentially imposing discipline on investors by encouraging them to "sell high" and "buy low." It is a systematic approach that can help investors stay on track with their long-term financial objectives. The frequency of rebalancing can vary, with common approaches including calendar-based rebalancing (e.g., quarterly or annually) or threshold-based rebalancing, where adjustments are made only when an asset allocation deviates by a predetermined percentage.