Re-balancing

Means re-balancing your total investment so that it fits your original risk tolerance profile.  As time goes on your investments may get out of kilter.  You may start out with 60% of your total investment in shares, 20% in fixed interest and 20% in property.  If shares do better than expected then after a couple of years you may end up with 70% in shares, 15% in fixed interest and 15% in property.  Your total investment then has a higher percentage in shares meaning greater risk than you were originally prepared to take.  Re-balancing fixes this.  It is important that you do this with your investment adviser on a regular basis.