We consider a nonlinear parabolic equation with a nonlocal term, which preserves the $L^2$-norm of the solution. We study the local and global well posedness on a bounded domain, as well as the whole Euclidean space, in $H^1$. Then we study the asymptotic behavior of solutions. In general, we obtain weak convergence in H^1 to a stationary state. For a ball, we prove strong asymptotic convergence to the ground state when the initial condition is positive.