Your Monitoring Procedures
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Your Monitoring Procedures
If you’ve created an investment policy statement, you have already developed your monitoring procedures for your portfolio. In doing so, you answered the following:
- What is my target allocation for each asset class (stocks, bonds, and cash)
- How often will I monitor my portfolio?
- How will I determine how well my investments are doing?
- How will I determine how well my overall portfolio is doing?
- Is my portfolio meeting my expected return?
- What fundamental criteria will I focus on as I review my holdings?
- How often will I rebalance?
If you haven’t developed your monitoring procedures or created your investment policy statement, you can download Morningstar’s Investment Policy Statement worksheet.
Things To Know
- Keep an eye on your portfolio’s characteristics, too.
As you can see, tracking your portfolio means more than just monitoring its performance. It means keeping an eye on your portfolio’s characteristics, too. And it requires you to make sure that the fundamentals of your individual investments haven’t changed since you bought them.