Monitor Your Investments

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Monitor Your Investments

In addition to rebalancing your portfolio, you’ll want to keep tabs on your individual investments. You need to make sure they’re still filling their original roles in your portfolio.

Here are some examples

Let’s say you’re monitoring your mutual funds. What types of things should you look for? If using a tool such as those offered by Morningstar, make sure your funds stay in the same category; if a fund’s style has changed dramatically, the fund may no longer meet your needs. Examine the fund’s category rating—is it still competitive? Watch out for manager changes, too.

With stocks, you’ll want to keep tabs on price, and where that price is relative to the sell target you’ve established. Changes at the top matter, too—new management can mean new strategy. Profitability, financial health, and growth prospects all matter, too.