BACKOne of the most important aspects of the passive investment philosophy is maintaining an appropriate asset allocation throughout all phases of the market cycle. How your assets are allocated across various investments is determined by how much risk you need to take in order to target a certain return and accomplish your goals. There are several ways in which we can rebalance a portfolio and the methods used are influenced by client circumstances, cash availability, tax efficiency, account type, and transaction costs.
Rebalancing: Rationale and Considerations
Author:
Scott D. Reinhardt, CFA
Published on: 20150401