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Portfolios 301: How to Monitor Your Portfolio, Part 1

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1.
When monitoring your investment portfolio, you would be wise to _______.
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Develop a set of monitoring procedures. Approach your portfolio scientifically with a set of procedures, goals, and criteria.
2.
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.
3.
What can happen if you ignore changes that occur in your portfolio?
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Both of the above. Ignore changes in your portfolio and you may end up with a portfolio that's very different from the one you originally put together.
4.
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.
5.
If a mutual fund no longer meets one of your investment criteria, should you sell it?
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Maybe, maybe not. It becomes a more important issue once it no longer meets most of your criteria.