Submitted by Prav on August 24, 2016 - 00:43
Most newbie investors have trouble understanding why rebalancing is a valuable tool for a portfolio. It seems unintuitive on the first glance to sell investments in a portfolio that have been the winners and buy the losers. But most investment research has now come to the conclusion that rebalancing is a valuable tool that can reduce risk and enhance returns compared to a buy and hold strategy.