Tuesday, 16 January 2018

Reassess Portfolio to Maintain Momentum Toward Investing Goals

Over time investments can deliver poor returns. By reassessing investment holdings on a regular basis, a portfolio can maintain momentum toward financial goals.

As time passes, an investor's investment holdings can become stale and begin to deliver poor returns if left unchecked. Thus, there are times when an investor should carefully assess the performance of their portfolio, and determine if their choices in investments are moving them closer to their investing goals, or not. By reassessing investment holdings on a regular basis, a portfolio can remain fresh and maintain momentum toward an investor’s financial goals.

Firstly, investors should clearly identify which investments in their portfolio are consistently under-performing for them. Then, as the markets change and new, more profitable opportunities become available, investors would be wise to replace risky, volatile holdings with more appealing, low risk options. Always being mindful of the constant progression toward financial milestones and goals, means that the best strategy is to repeatedly introduce investments that protect and increase personal wealth.

Too often, investors will become emotionally attached to an investment in their portfolio, and will insist on holding it despite repeated and mounting losses. This is a very dangerous approach to making investments. Investing should be done impartially and without bias. Investment decisions merit careful consideration, and need to be based on facts and figures, not forecasts and feelings.

To be successful, investing should be regarded as an evolving, ongoing process. It requires that an investor remain ever-vigilant in the pursuit of better performing, lower-risk investment options. Conducting in-depth research and assessing exposure to risk are part of a dedicated investor’s investing regime. If this is not something you are prepared to commit to, it might be wise to seek help from a money manager or financial adviser. Of course there will be fees, but they are likely to be less than losses from one poorly made, uneducated investment decision.

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