And remember, rebalance frequently. That way, when your small cap holdings outperform the large cap, you take money out of small cap to put into the underperforming large cap (if you're in a nontaxable account) or you put extra into large cap to get the ratio right (if you're in a taxable account, to avoid capital gains.) You'll end up wringing possibly an extra percent of return out of your investment by doing this every six months.I always see advice say annual rebalancing but with the volatility in the markets, six months sounds good as long as there are no transaction costs.IF
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra