EconCERF
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Intermediate · I4

Rebalancing

Portfolios drift on their own. This module shows when to act, the cheap way to do it, and why a written rule helps you at the moments instinct gets it wrong.

By the end of this module, you’ll be able to:

  • Explain how market movements cause your chosen mix to drift.
  • Explain how rebalancing restores your mix without promising a higher return.
  • Use a yearly review date and each holding’s corridor to decide when to act.
  • Use new contributions before selling to correct drift.
  • Explain why buying an under-target asset after a fall can restore your mix.
  • Compare your broker statement with the corridors in your plan.

6 lessons · about 40 minutes

  1. 1Drift, visualized
  2. 2What rebalancing is for
  3. 3The two triggers
  4. 4The cheap way
  5. 5The behavioural bonus
  6. 6Rebalancing in one page + a quick check

This module is free to read with an account. Register free to open every lesson in full and save your progress.

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