Why It Pays To Keep an Eye on Your Portfolio


Whether you are a newcomer or a seasoned investor, one of the keys to successful investing is having an annual portfolio review. It’s essential if you want to ensure that the stocks and shares you hold are still in line with your investment objectives.

Failing to keep an eye on your investments might mean that you are exposing yourself to more risk than you would like. When your portfolio was set up, your holdings would have been selected in line with your risk profile; however, with the passage of time, their performance might signal a need for change.

Some elements of your portfolio may have fared better than others and as a result the proportions of various assets may have altered from your initial allocation. A review might show that you are holding poorly-performing shares that are dragging down overall performance and it could be time to dispose of them. You might also want to sell some assets that have made a good profit and look for new opportunities that increase the spread and diversity of your portfolio.

Your Changing Needs

If your situation has changed, then perhaps your investment goals have too. If you have experienced major changes in your life, like getting married, having children, redundancy or divorce, then your attitude to risk may have changed. If you’re approaching retirement, you may want to change your focus from investing for long-term growth to investing for income instead.

While investing means looking at a five to ten-year horizon, and not letting short-term market volatility cause you too much concern, forgetting to review your portfolio could be foolish. If it’s been a while since you last looked at your investments, why not contact us to arrange a review?

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.

It is important to take professional advice before making any decision relating to your personal finances. Information within this blog is based on our current understanding of taxation and can be subject to change in future. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK; please ask for details. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from taxation, are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. The value of investments can go down as well as up and you may not get back the full amount you invested.

The past is not a guide to future performance and past performance may not necessarily be repeated. If you withdraw from an investment in the early years, you may not get back the full amount you invested. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency.

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