Step 8: Monitor and Rebalance Your Portfolio

Regularly reviewing and rebalancing your portfolio is crucial for maintaining a healthy investment strategy. As market conditions change, the value of your investments will fluctuate, potentially shifting your portfolio away from its target asset allocation. To ensure your investments continue to align with your financial goals and risk tolerance, it’s important to periodically assess and adjust your holdings.

Rebalancing involves selling assets that have grown beyond their target allocation and buying those that have lagged, effectively realigning your portfolio. This disciplined approach helps manage risk, maximize returns, and keep you on track towards achieving your investment

objectives. By staying proactive and attentive to your portfolio’s composition, you can navigate market volatility with greater confidence and maintain a balanced investment strategy over time.