The world of finance, connected.
⌕
EN / Global
Re
Financial encyclopediaReviewed 2026-10-23

Rebalancing

Rebalancing brings a portfolio back to its original asset allocation mix. This is necessary because over time, some investments will grow faster than others, and holdings may become out of alignment with investment goals.

Sources and references ↗
PROFILE / FACT FILE

Concept at a glance

Term
Rebalancing [1]
Subject area
Investor.gov glossary [1]
Jurisdiction / scope
US regulatory and investor-education context [1]
Primary reference
SEC · Investor.gov [1]

Definition and explanation

Rebalancing brings a portfolio back to its original asset allocation mix. This is necessary because over time, some investments will grow faster than others, and holdings may become out of alignment with investment goals. [1]

Source-supported connections

Rebalancing → Mentioned in the official explanation → Asset [1]
Rebalancing → Mentioned in the official explanation → Asset Allocation [1]
Rebalancing → Mentioned in the official explanation → Portfolio [1]

Frequently asked questions

What does Rebalancing mean in the cited reference?

Rebalancing brings a portfolio back to its original asset allocation mix. This is necessary because over time, some investments will grow faster than others, and holdings may become out of alignment with investment goals. [1]

RELATION MAP

Rebalancing connection map

Drag to rotate · Scroll to zoom
Rebalancing

Select a node to inspect the relationship and source.

Links retain their source-specific meaning. Award-time affiliations and links to related reading are not claims about current appointments or economic causation.

Sources and review dates

  1. US SEC · Investor.gov — Rebalancing ↗

Reviewed 23 October 2026. Historical dates and award-time affiliations retain their original context. A review date is not an event date. Background sources are identified separately from official records.

Content preparation: source-based compilation with AI assistance. See methods and attribution. Named sources identify the underlying records; no individual expert review is claimed.