Rebalancing - Milford Asset


If you choose to diversify your investment, it makes sense that some assets are going to outperform others. Over time, this difference in performance alters the overall percentage of each type of asset you hold. This means you might be inadvertently exposing yourself to more or less risk than you’re comfortable with. Rebalancing your investment is something you should consider doing every six to twelve months, and is simply a process of assessing how each type of asset has performed and reallocating funds between them to ensure they remain in their desired percentages.

When investing in a KiwiSaver Plan Fund or Milford Unit Trust PIE Fund, the Portfolio Manager rebalances the assets within the Fund to ensure the risk and reward profile of the Fund remains consistent. If you invest in multiple Funds and/or in other assets, you should review your overall portfolio on a regular basis to ensure you are comfortable with the asset mix.