Portfolio rebalancing is a fundamental investment practice that involves adjusting the allocation of assets within a portfolio to maintain a desired investment strategy. Rebalancing helps investors restore their intended portfolio mix, ensuring that investment risk remains aligned with long-term financial objectives. Rather than attempting to predict market movements, portfolio rebalancing focuses on maintaining discipline and consistency throughout different market cycles. There are several approaches to portfolio rebalancing. In conclusion, portfolio rebalancing is an essential element of long-term investment management.