<prompt> Human: I notice that they pretty much bundle a bit of everything from domestic to global stocks and bonds and actively rebalance so that they meet the set lifestyle percentage 80 equity, 20 bond etc... Which makes me wonder whether this continuous rebalancing may lead to lower overall returns compared to just individually holding the index funds and not doing anything?  <response>: Which makes me wonder whether this continuous rebalancing may lead to lower overall returns compared to just individually holding the index funds and not doing anything?If youre wondering this then you are missing the point of a LifeStrategy fund. The entire point is to maintain a constant allocation of stocks and bonds. Its completely obvious that a risker portfolio will, over the long run, outperform a less risky portfolio albeit with higher volatility. 