6. Portiolio rebalancing Rebalancing Your Portfolio Portfolio rebalancing is the process of bringing your different asset classes (stocks, bonds, and cash) back into proper relationship following a significant change in the value of one or more of them. You should monitor your investments and normally rebalance your portfolio about once a year to return your investments to their proper balance when they no longer conform to your investment plan: Suppose that you begin an investment program with a portfolio having an asset allocation of 40% bonds, 25% equities, and 35% cash investments. One year later, you find that some investments have performed better than others. After a year, the portfolio now consists of 40% bonds, 40%. equities, and 20% cash irvestments, To rebalance this portfolio back to its original asset allocation, you should seil some of your. and use the proceeds to purchase additional 6. Portfolio rebalancing Rebalancing Your Portfolio Portfolio rebalancing is the process of bringing your different asset classes (stocks, bonk jonship following a significant change in the value of one or more of them. You should monitor your investmen tholio about once a year to return your investments to their proper balance when they no longer conform to your in Suppose that you begin an investment program with a portfolio having an asset aliocation . 5% cash investments. One year later, you find that some investments have performed better than others. After a 10% bonds, 40% equities, and 20% cash investments. To rebalance this portfolio back to its original asset allocation, you should self some of your. and use the proceeds to purchase additional Rebalancing Your Portfolio