All terms
Rebalancing
Resetting your portfolio to the split between different investments that you originally planned.
When you spread money across several investments, their shares drift over time because they perform differently. Rebalancing restores your planned split.
Example: you want 70 % equity ETF and 30 % savings account. After a good year on the market it is 80 % to 20 %. You move money back, or direct new savings into the savings account, until you are back at 70 to 30.
This keeps your risk at the level you chose. Many people do it once a year. Note that selling at a profit can trigger German capital gains tax and fees.