Lesson 11: Portfolio management and tracking

Lesson 11 transcript

What is portfolio rebalancing?

Here’s an example

Say the original target asset allocation for a growth-focused investor is 80% stocks and 20% bonds. If stocks perform well during a given period, the stock weighting of the portfolio might increase to 90%. The investor may then decide to sell some stocks and buy bonds to get the portfolio back to the original target allocation of 80/20.

Even if you see yourself as a set and forget investor, it is important to still check your investments are still on track to achieve your financial goals.

Betashares Capital Limited (ABN 78 139 566 868 AFSL 341181) (Betashares) is the issuer. Before making an investment decision, investors should consider the Product Disclosure Statement (PDS) and Target Market Determination (TMD), available at www.betashares.com.au. This information does not take into account any person’s objective’s, financial situation or needs and is not a recommendation or offer to make any investment or to adopt any particular investment strategy. Investors should consider the appropriateness of the information taking into account such factors and seek financial advice. Investments are subject to investment risk, investment value may go down as well as up, and investors may not get back the full amount originally invested. ASIC’s MoneySmart website has useful information for people considering investing. The MoneySmart resources can be found here – https://www.moneysmart.gov.au/investing. ASIC’s MoneySmart website has no affiliation with Betashares.