Rebalancing band
Risk & psychologyA tolerance around a target allocation, breached only when a sleeve drifts beyond it.
In plain terms
What turns "stay mostly in equity" into a rule you can check in ten seconds.
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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A tolerance around a target allocation, breached only when a sleeve drifts beyond it.
What turns "stay mostly in equity" into a rule you can check in ten seconds.