Rebalance Your Portfolio
Calculate portfolio rebalancing to maintain target asset allocation
Portfolio Details
Enter current and target allocation
Current Allocation
Target Allocation
About Portfolio Rebalancing Calculator
Portfolio rebalancing is the process of realigning your investment portfolio back to your target asset allocation. This calculator helps you determine how much to buy or sell to maintain your desired risk profile.
Why Rebalance?
- Maintains your target risk profile
- Prevents over-concentration in one asset class
- Ensures portfolio aligns with your goals
- Helps in disciplined investing
Frequently Asked Questions
Portfolio rebalancing is the process of realigning your investment portfolio back to your target asset allocation by buying or selling assets when their weights drift from the target due to market movements.
Rebalancing helps maintain your risk profile, prevents over-concentration in one asset class, and ensures your portfolio aligns with your investment goals and risk tolerance.
Rebalance when asset allocation drifts more than 5-10% from target, or on a periodic basis (quarterly, semi-annually, or annually). Avoid over-rebalancing to minimize transaction costs.
Rebalancing costs include transaction fees, capital gains tax (if applicable), and potential bid-ask spreads. Consider these costs when deciding rebalancing frequency and threshold.