๐ Portfolio Restructuring vs. Rebalancing โ Do You Know the Difference?
๐ RESTRUCTURING
โ Nature: Completely overhauls the Strategic Asset Allocation (SAA) policy
โ Purpose: Flexibly optimizes returns OR controls risk
โ Complexity: HIGH โ requires deep research to shift portfolio weights
โ๏ธ REBALANCING
โ Nature: Maintains the original strategy by restoring weights back to the initial SAA
โ Purpose: NOT about maximizing returns โ focuses on risk control & staying true to the original strategy
โ Complexity: LOW โ executed periodically or when triggered by a signal
Restructuring = changing the game plan.
Rebalancing = sticking to it.
$BTC #Rebalancing #restructuring