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Managing Portfolio Drift

Being in balance is good for most things in life. Think work-life balance, eating a balanced diet, balanced budgets, balance beams...okay, that last one’s just for fun, but you get the idea.

In the investment world, maintaining balance means having the right mix of stocks, bonds and cash in your portfolio. Without this balance, your portfolio can start to drift. And too much drift means it may be time for a tune-up.

That’s where rebalancing comes in, which is just one of the ways RBC InvestEase has you covered.

open quotes When your portfolio drifts too much, it means your asset mix has gotten out of whack with your original target. open quotes

When your portfolio drifts too much, it means your asset mix has gotten out of whack with your original target. Hey, it happens. Sometimes certain investments do particularly well, while others not so much. For example – if equity markets have done well and your portfolio is up – that’s great, right? Of course, but you may be over-exposed to equities and the makeup of your investments may no longer align with the amount of risk you’re comfortable with.

A team of expert advisors and in-house technology allows us to constantly monitor your portfolio to make sure you’ve got the right asset mix, based on what you’ve told us about yourself. When drift becomes an issue, rebalancing kicks in. Not only does that bring your portfolio back in line with your original objectives, it’s an opportunity to lock in gains from one asset class and put ‘em right back to work in other asset classes that may have become relatively inexpensive.

While we can’t make sure you’ve got all your food groups covered adequately, RBC InvestEase does have your back when it comes to keeping your portfolio in balance.

Questions about whether or not your portfolio is in balance? Call our expert team of Portfolio Advisors…

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At this time, RBC InvestEase is only available to residents of Alberta, Ontario and Saskatchewan who are 18 years old and over.

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By Team RBC InvestEase

July 2018

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This document was prepared by RBC InvestEase Inc. and is for your general information only and is not intended to provide legal, investment, financial, accounting or tax advice. If you require any such advice, you should retain the services of a competent professional. RBC InvestEase Inc. provides online discretionary investment management services and is a wholly-owned subsidiary of Royal Bank of Canada and uses the business name RBC InvestEase.