How often should I check my portfolio?

If you are an investor in something, it can be tempting to check your portfolio every day, especially if you are new to the investment game. However, a lot of experts say that checking your portfolio a lot can actually lead to you making poorer decisions or something you will later regret.

A lot of people say that checking your portfolio quarterly is enough, as this is when the information is released regarding how well or how bad certain companies are doing. By checking your investments each quarter, you can get a good picture of what is going on with your money and whether you can expect good or bad returns from this. However, for some people checking your portfolio this often can be bad. If the quarter has been exceptionally bad then a lot of people will make rash decisions that could lose them money, rather than waiting it out and seeing what happens the following quarter. The same goes if the quarter has been particularly good for your investments.

If the quarter has been very good, it can be incredibly tempting to sell while the stocks are high, however this doesn’t mean that they will remain high or even that they won’t get higher. People are impulsive, particularly when it comes to money and if they see they are making money it can be too tempting to pull this money out and use it while they have it. Equally, if they are losing money, they will only see the losses and they will lose sight of the bigger picture.

How often you check your portfolio is entirely up to you. You know how impulsive you are as a person and if you know that you are prone to making rash decisions then maybe you should stick to checking your portfolio once a year. If you know that you are more level headed and don’t give in to temptation easily, then checking your portfolio more often may be of benefit to you. If you own individual stocks, checking your portfolio more regularly is better, as these are more likely to change more frequently. Don’t go overboard though, make sure to keep it within reason.

A lot of people recommend checking your portfolio around halfway through the year, for a variety of reasons. It allows to look at whether your investment is working in line with your goals and whether your goals or circumstances have changed. Another reason to check at the halfway mark allows you to allocate your assets accordingly. If your plans or situation has changed, or even if your investment has changed, you may want to reallocate your assets depending on the above factors. Ultimately, you should check your portfolio at least once a year, but to do so more frequently is a choice that is yours to make.

Written by:
Alex Lopez
Posted on:
July 25, 2017