Rebalancing restores an investment portfolio to your original target allocations.
As prices of securities change over time, your initial target allocations may drift, which may result in a portfolio that no longer aligns with your risk profile or investing style. Rebalancing allows you to reallocate funds to keep your portfolio in line with your accepted risk tolerance and financial goals.
Please keep in mind that any time you rebalance your portfolio you may initiate a series of buy and sell securities transactions. Sales of securities may carry tax implications which you should consider before making the decision to rebalance your portfolio.