The Re-balancing Reward - Russell Investments
Experienced investors typically understand the benefits of a re-balancing strategy for their investment portfolios. But few actually make the effort to,
- Establish a formal re-balancing strategy
- Actually commit their re-balancing strategy in writing, and
- Maintain the strict discipline to actively re-balance their investments on a regular or consistent basis.
As a result, investors fail to maximize their long-term investment performance, while minimizing their portfolio's volatility and level of risks.
There are numerous reasons for an investor's failure to define and adhere to a re-balancing strategy - individual personality traits, social and investment industry influences, greed and fear to name just a few.
For these reasons, having a well defined re-balancing strategy and maintaining the discipline to consistently execute that strategy become critical to safeguarding your savings and improving your overall investment performance.
Russell Investments has published this report, The Re-balancing Reward, which discusses the benefits inherent in maintaining a re-balancing strategy.