Rebalance the portfolio

Because investment in a portfolio perform according to the vagaries of the market, over time certain investment may grow while others may decline. This might result in your investment's asset allocation deviating from their original specification. When they become too heavily exposed in one asset class, their risk increase accordingly. To bring the portfolio back in line with the original asset allocation, investments in the under-weighted asset class can be increased with the proceeds of the partial sale of the asset class that has become overweighted with respect to the original asset allocation.

It is time for you as investors to rebalanced your portfolio when

• substantial gains incur or major loses that significantly skew portfolio allocation
• investment objectives change (e.g pay off a large mortgage, nearing retirement or child is heading to collage soon)
• an asset class within the portfolio is consistently and continually slipping compared with the benchmarks

Thus, as investors its is important to monitor portfolios regularly to determine the financial goals. The general rule of thumb is set a date for rebalancing and stick to it. the prevailing view is that rebalancing annually appears to work well for most general investors without inccuring woo much costs.

Note : Mohd Zarif would be very glad to work hand to hand with anyone whom concern about their retirement plan, education plan or even personal financial goals, especially all his investors', in order to do so, feel free to drop me with a text message or call me at 019-3405447