Investing term

What is Drift?

The gradual shift in your portfolio's mix as some assets grow faster than others.

Drift is the gradual shift in your portfolio's mix as faster-growing holdings swell their share and slower ones shrink. It happens automatically and quietly nudges your risk level higher than you intended. Rebalancing is the deliberate act of undoing drift, selling a little of what's grown most to top up what's lagged.

For example

Your 70/30 stock-bond mix drifts to 78/22 after a good year — you're now taking more risk than you chose, purely from market movement.

Drift is taught hands-on in Stage 10 — Building Your First Portfolio.

See the lesson →

Related terms

AllocationHow your portfolio is split across asset classes (stocks, bonds, cash, alternatives).Balanced fundA single fund that holds both stocks and bonds at a fixed ratio, automatically rebalanced.Core-and-satelliteA portfolio structure where most of your money sits in a 'core' diversified base, with smaller 'satellite' bets around the edges.HorizonHow long until you need the money.
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