Explaining Rebalancing Strategies in Portfolio Management

During a recent review of their investment portfolio, a wealthy client expressed concern that the equity portion of their portfolio had increased significantly compared to their fixed income holdings. The client has a target asset allocation of 60% equities and 40% fixed income. Given that the current allocation is 70% equities and 30% fixed income, the client's investment advisor must decide how to rebalance the portfolio effectively.

Explain the importance of rebalancing in portfolio management and describe two different rebalancing strategies that the investment advisor could employ to realign the portfolio to the target asset allocation. Include the advantages and disadvantages of each strategy.