With the ongoing economic uncertainty triggered by geopolitical tensions and US tariffs, it is possible that your portfolio may not be performing very well. In such cases, it is important to take a step back and review your financial strategy.
By tracking your investments regularly, you can identify any underperforming assets. This allows you to rebalance your portfolio and make informed decisions to stay on course in the journey to achieve your financial goals.
It’s always advisable to monitor the short-term fluctuations, so that they don’t impact the long-term goals. If you keep an eye on your investment progress, it will help in building financial discipline and provide long-term stability.
Steps To Review And Revive Portfolio
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It is recommended to compare your portfolio’s ongoing returns against your overall investment goals. Check if they align with your anticipated annual projections. Review the performance as per their past trends. You can also compare your investments with benchmark indices to identify gaps.
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If your portfolio is underperforming, you can adjust the asset mix. For instance, during periods of economic uncertainty, you can rebalance your portfolio towards less volatile assets such as bonds and gold.
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If you are holding individual stocks in your portfolio, it might be a good idea to review their returns. Carefully review expert analysis and company fundamentals to adjust the investments according to your risk appetite.
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It could be a suitable option to define certain conditions for selling or exiting an investment instrument in advance. Having clear exit plans helps prevent emotional decision-making and protects your capital.
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Regularly evaluate the fees, charges and expenses associated with your investments, such as fund management fees or brokerage costs. While these can seem like small amounts, they have a key impact on your overall portfolio performance. For instance, if a certain mutual fund has higher operational costs, it is best to review your holdings carefully.
These steps can help your portfolio shed some of its losses and chart a path towards recovery, improved performance of the portfolio and long-term financial goals.
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