Strategic Asset Allocation: Portfolio Rebalancing
Interactive

Strategic Asset Allocation: Portfolio Rebalancing

Intuition Publishing Pty Ltd
Updated Sep 24, 2020

Once markets open, prices are changing on a constant basis. Portfolios experience portfolio drift. In order to preserve a strategic asset allocation, allocations must be rebalanced so the risk/return profile of the portfolio is maintained. We look at the different methods of such as buy-and-hold, constant-mix, constant proportion portfolio insurance (CPPI) and option-based portfolio insurance (OBPI) strategies.

;