Keep your portfolio in perfect balance

Investment portfolios are like gardens - they need regular maintenance to stay healthy. When setting up your portfolio, you likely choose your asset allocation based on your financial goals and risk tolerance. However, market movements have a way of altering these carefully laid plans. This natural deviation from your target allocation is called 'portfolio drift', a challenge every investor faces. Consider what happens during a strong market rally - your portfolio's equity allocation automatically increases as equity values rise faster than other assets. What started as a carefully planned 60:40 equity-debt ratio might drift to 70:30 or even 75:25, exposing you to higher risk than you initially intended. This can potentially create several pro