Rebalancing is all about risk control
Investing, like walking a tightrope, is an activity that requires good balance to overcome the risks involved. Your original asset allocation was set up to match your needs and your risk tolerance. If neither has changed, your allocation shouldn't either. Take the portfolio below, for example. A strong stock performance can cause a simple 50/50 mix to become unbalanced over time. Not only does the portfolio's allocation change, but also the portfolio's risk.

Over time, a portfolio may become unbalanced

Return to your original risk level by rebalancing
The only way to regain your balance and return the portfolio to the original risk level is through rebalancing. It is important to review your financial goals periodically with your financial representative. Talk to your financial representative about the importance of rebalancing.

Keep in mind that an investment cannot be made directly in an index, and past performance is no guarantee of future results. This is for illustrative purposes only and not indicative of any investment. The sale of an investment for the purposes of rebalancing may be subject to taxes.