Your Portfolio: The Rebalancing Act.

The article focuses on investment portfolio rebalancing. It states that analysts at mutual-fund Vanguard Group recommend rebalancing portfolios once a year and suggested rebalancing more often can increase costs and fails to reduce portfolio drift or volatility. It mentions that rebalancing can help reduce risks in volatile markets. It comments that while selling stocks or bonds can trigger taxable capital gains, portfolios held in tax-sheltered accounts like 401(k) will avoid the taxes.