Jan 01, 1970 3 min read

Know Why It Is Important to Review Your Investment Portfolio Periodically

Keeping a review of your investment portfolio is one of the key skills to become an astute investor. Know more.
Do you keep a regular check on your mutual fund investment portfolio? If no, then build a habit to do the same because all it needs is little attention from you to become an astute investor. If we see the relation with our friends, it gets stronger with a little attention toward each other.

In a car, we need a GPS tracker to assure that we are moving toward the right track. Similarly, the mutual fund investments also need little attention that can be helpful to create wealth more efficiently.

Some of the investors build a wrong concept in their mind and they think, why they need to perform a regular check if there are fund managers to manage the schemes in which they invested. Yes, of course, there are expert fund managers who apply their best strategies to fetch the maximum possible returns for you. But, there are certain circumstances which may be harmful to your investments if you do not keep a regular check on it.

Here are some of the major reasons to review your investment portfolio regularly:

  • Ensure the Funds’ Performance : Rarely, but it happens that we invest in a mutual fund scheme to attain a particular financial goal and due to any uncertain market condition it cannot perform in accordance with the predetermined objective. In such cases, the one who keeps a periodical eye on the portfolio gets the opportunity to perform the required actions in time, unlike the one who doesn't. Therefore, the regular check helps you to ensure whether the fund is moving on the right track or not.
  • Change in Goals : You might be thinking that, what we are talking about? Why would one change the investment goals? Exactly, you are correct if you have questions like these. But let us tell you that there may be additions in the objectives of a person as he/she grow older and gain more knowledge. An individual who started investing in his/her future at the age of 25 might not have planned for children or retirement. These goals will be added as he/she grew older and feels the need for planning them. Therefore, you must keep a regular check on your investments and can re-balance to expand or shrink the investment portfolio as per the changes in the financial objectives.
  • To Maintain Diversification : The market keeps fluctuating more or less, and its swings affect the value of your investments. To ensure that your investments are not getting many hits by those market moves you need to manage a continuous evaluation of your investment portfolio. Furthermore, there may be requirements to diversify or for changes in the portfolio, which can be done if you keep a periodical review of your online mutual fund investment portfolio.
  • Change in Fund Managemen : The fund managers are the key personnel of any scheme because their potential of understanding different market situations reflects on the performance of the scheme. So, in the case when any new fund manager joins the management of the scheme or the existing one leaves, the performance of the fund may tilt either side of the scenario. The fund may show unfavorable run if the new fund manager cannot match up the investment style of the fund. In such cases, you can choose to rebalance your portfolio after getting it reviewed by your financial advisor.
  • Market Turnaround : The regular check on your portfolio also helps you to keep your investment profile updated. In case of any unfavorable changes in the fundamentals or technical matters of any sector or market in which your scheme invests, your investments would be in danger and can have a negative impact. You can identify such changes and manage the portfolio to attain an efficient investment if you keep an eye on the details of the scheme you’ve invested.

Therefore, it doesn’t matter whether you are a beginner or a well-informed investor, keeping a regular check on your portfolio is one of the keys to attaining successful investments. Moreover, it also helps you to gain updates and knowledge about the current market scenario which can be helpful to make any new investment decisions and earn more profits out of different market scenarios.

You can experience an amazing journey of mutual fund investments and can manage your investment portfolio effectively and efficiently at MySIPonline. To start your journey toward wealth-creation, get associated with us right away.

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