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Portfolios 301: How to Monitor Your Portfolio, Part 1

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1.
Portfolios _______.
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Both of the above. Portfolios can change without us doing anything to them. Market forces will make some investments perform better than others, which means they'll take up more of our assets. Or fund managers buy and sell securities, thereby changing the underlying portfolios of our mutual funds and, therefore, changing the look of our overall portfolios.
2.
The best way to put an investment's performance into context is to compare its returns to those of _______.
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An appropriate benchmark. Compare the returns of your investments to the benchmark you chose.
3.
The Internet can send you alerts to tell you when there are big changes in your investment holdings.
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True. Some financial Websites will send you such alerts if you sign up for them.
4.
Which of the following would be valuable to do before you start monitoring your investment portfolio?
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Both of the above. Both of these are wise things to do. Though you can develop your monitoring procedures on your own, creating an investment policy statement would accomplish that as well as additional objectives.
5.
What should you expect from your mutual funds as you're monitoring them?
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That they're still meeting your investment criteria. You want your funds to meet the same investment criteria today as they did when you first bought them. If they no longer meet your criteria, do they still belong in your portfolio?