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Kiplinger
Kiplinger
Business
David Jaeger, CFP®

Is Your Portfolio Overweight? How to Rebalance Your Way Back to Diversification

(Image credit: Getty Images)

Most financial advisers recommend a diversified portfolio of stock and bond investments for their clients to help manage risk. Why? Because when a portfolio holds many different kinds of securities, the rising value of one security may offset a decline in the price of another.

But sometimes market forces or other events can cause a portfolio to hold a larger portion of certain securities or asset classes than specified in the investor's target asset allocation.

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