As assets move differently, a portfolio drifts away from its intended allocation. Rebalancing returns it to policy.
OUR METHODSources → assumptions → European context → verdict
Why drift matters
An 80/20 portfolio can become much more equity-heavy after a strong stock market, quietly increasing risk.
Two practical methods
Review on a fixed annual date or when an allocation moves beyond a defined band. New contributions can rebalance with fewer sales.
Accept the discomfort
Rebalancing often means buying what recently lagged and trimming what recently won. That is risk control, not a forecast.
Educational illustration only—not personal financial, tax or investment advice. Tax, salary, broker and market figures change; verify current local information before acting.