You carefully selected the perfect mix of stocks and bonds for your investment portfolio, only to find it’s in disarray less than a year later.

But a rebalance could fix that, aligning your portfolio once again with your target asset allocations.

Rebalancing means buying and selling equities and fixed income, among other assets, to get back to the ideal mix of investments in a portfolio. But knowing how often or how much of the portfolio an investor should rejig can be tricky.

“Typically, what happens is when you’re invested, the holdings within the portfolio will drift with time, as the market does,” said Devin Cattelan, portfolio manager at Verecan Capital Management.

For example, if a portfolio is comprised of 65 per cent stocks and 35 per cent fixed income, the balance can shift to

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