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 is 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 into play, which is just one way RBC InvestEase has you covered.
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 and 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.
With a team of expert advisors and in-house technology, we 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 ensure you’ve got all your food groups covered, 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...