Summary of Rebalancing Your Fund Portfolio

Like many investors' bellies, their portfolios can become lopsided in places. And just as periodic exercise will keep everything in its place, so will rebalancing. That's why keeping an eye on your mutual funds is important. When one part starts bulging out, it can affect the overall risk level of your holdings—along with the amount of income available to you—which can cause you to lose out when the market heads south.