Can someone please validate my understanding?
All three rebalancing straetgies- Buy and Hold, Constant Mix, and Constant proportion of portfolio insurance fits investors with increasing risk tolerance with respect to wealth. However, CPPI (compared to BH) fits for investors who have more risk tolerance. Constant Mix has constant relative risk tolerance with respect to wealth because the equity % of portfolio remains same.
If you guys have better/clearer ways to frame these concepts, please write it. Thanks.