Asset allocation involves distributing an investment portfolio across various asset classes, such as equities, fixed income, and cash equivalents, to mitigate risk and enhance potential returns. This strategy is customized according to the investor's financial objectives, risk appetite, and investment timeline.

Investment rebalancing involves the regular adjustment of a portfolio's asset distribution to return it to its intended target allocation. This is usually achieved by selling assets that have exceeded performance expectations and purchasing those that have lagged, ensuring a stable risk profile and alignment with investment objectives.

Investment diversification involves distributing investments among different asset classes, sectors, and regions to minimize risk and potentially improve returns by lessening the effects of any one investment's poor performance.

Tax-efficient investing focuses on choosing investment strategies and accounts that lower the taxes you owe on your earnings. By strategically balancing taxable and tax-advantaged accounts, you can decrease your tax liability on investments, ultimately allowing you to retain more capital for growth.