Monitoring Your Performance

Why are you investing? What are your goals? Any person investing or looking into investing should have these goals in their minds. In order to maximize the performance of your portfolio, make sure to actively monitor your performance to ensure you’re staying on track. Investors should know their goals, their time horizon, and their risk tolerance.

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Measuring and monitoring are essential to success.  

Every once in a while, a blind squirrel will stumble upon an acorn, but unfortunately, in life, this is a rare occurrence. Researching your options and actually executing your investments shouldn’t be the only one time you look at your portfolio. Measuring and monitoring allows your portfolio to align with your current goals.

Sit down and think about your investment goals.

Whether you’re saving up for a new house, or to live comfortably in retirement, make sure you have solid goals in place before attempting to invest. You’d want to build your wealth based on the goals you have in mind –whether it’s for growing your portfolio or for it to return income. This allows you to figure out a risk tolerance suitable for you.

Steps to monitoring.

If your portfolio is off track, take a step back and consider what you want out of your investments. Either work with a financial advisor or as an individual to get back on track to align with your goals. These 4 steps will help you constantly monitor your performance.

1. Assess your portfolio’s performance

Go and check your portfolio’s returns. Is it on target with the goals that you currently set? Make sure that it has performed as well based on that and its market benchmarks over the same period.

2. Evaluate your asset allocation strategy

Is your portfolio well diversified? Your portfolio management goals may have changed over time, so make sure that your portfolio is still right for you. It is a good idea to rebalance if it does not match your needs.

3. Review each of your individual funds

Make sure to review each individual fund to make sure it is performing as it should be. Doing this will allow you to keep aligned with your investment goals.

4. Review your future goals

Remember that you are investing for the future –make sure you have a clear idea of your goals and how your portfolio can take you there. Remember, your goals can change –which is why it’s crucial to constantly monitor your portfolio performance.

 

Monitoring your portfolio performance is a crucial part of any successful strategy. Become the sophisticated, expert investor you want to be and take control over your portfolio.

 

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