Risk
What is rebalancing?
Returning your portfolio to its intended mix after prices have moved it.
Explained in more detail
If equity rises sharply it becomes a larger share of your portfolio than you planned, which quietly raises your risk. Rebalancing sells a little of what grew and buys what lagged, which forces you to sell high and buy low without predicting anything.
An example
For instanceA 70:30 split that drifted to 82:18 is brought back to 70:30 once a year.
Why this matters to you
You will meet this word in broker apps, company results and market news. Knowing what it means is not the goal on its own. The goal is being able to judge whether a number is good or bad for the investment you are actually holding.
On AlphaVik, any time rebalancing appears in a view or a lesson, you can hover or tap the word and this explanation comes with it. You never have to leave the page to look something up.