The investment market is constantly changing, sometimes in large swings. It can be extremely challenging to understand when and how to adjust your investments. By regularly reviewing your portfolio, you accumulate new knowledge about the market, different asset types, and your specific investments.

Identify & Seize Opportunities to Reduce Risk & Improve Performance

If you are an experienced investor or if you work with an advisor, you likely have insight into current market conditions and the implications of various swings. As your experience grows, you will be able to make decisions with increasing confidence, understanding the short-term and long-term effects of different market conditions.

A regular review of your investments provides a consistent opportunity to check-in. Whether you are keeping an eye on shifts, monitoring performance, maintaining balance, or researching new opportunities, a consistent review will help you stay engaged with all the moving pieces.

It also provides the perfect opportunity to investigate new types of assets, and new possibilities in the world of investing. By checking in on your portfolio consistently, you’ll never miss the chance to research and get in on a new opportunity.

Rebalancing and Diversifying Your Portfolio

A regular review of your portfolio also offers the chance to reassess and expand your asset mix. The benefit of rebalancing is twofold: you can reinvest your profits into new assets and protect yourself from excessive risk.

Additionally, your annual review is a great time to invest new money. Whether you’re adding funds to existing assets or purchasing new financial products, your regular check-in is the perfect opportunity to make a contribution.

Adjusting your portfolio takes time and attention, it’s important to perform a thorough analysis and ensure all changes are serving your long-term goals. Also, there can be costs associated with this process, so it’s critical to understand your fee structure and how much changes will cost you in the long run.

Beginners and experienced investors may check their investments at different intervals. Reviewing your portfolio will always uncover new data and context, offering insight and knowledge that will build over time. This process will make you more confident and comfortable with investing, leading to a more empowered and engaged experience.

Stay Connected and On-Track with Long-Term Goals

A regular review of your investment portfolio is also the perfect opening to assess your long-term goals, whether they are changing or staying the same. It is a time to analyze past performance, understand the current market, and adjust your strategy for future returns.

When you are familiar with the swings of the market, you are more comfortable moving through changes. When you are informed about your portfolio, you can take ownership of your asset balance, ongoing contributions, and how performance impacts your financial goals.

Regularly reviewing your portfolio offers you a deeper understanding of the investment experience and empowers you to embrace the journey. Make investment decisions with confidence, trusting that you are on the path towards the future you want. Still not sure how to get more actively engaged in your investments? Our Investment Essentials course will give you the tools and knowledge you need to get started.