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Why it’s important to review your financial portfolio regularly?


In today’s evolving marketplace, a strong financial portfolio is your best bet to reach your capital requirement goals. Over time, you may have invested in different classes of assets to spread your risks. Each class has varied levels of return and risk which means each will behave differently at a particular time. You need to review your investments from time to time and rebalance your portfolio as required. It is advisable to do at least a bi-annual review of your portfolio and evaluate all your investments. A review is also essential especially after a major life event like marriage, the birth of a child etc. If you notice that an asset is constantly under-performing in relation to its benchmark and peer group investments over multiple quarters, then it is vital to switch to another product in the same asset class.

You can take advice from financial experts to manage your portfolio and validate your goals as per changing market conditions

Your original portfolio:

Your investment portfolio was originally made up of:

50% stocks 

50% bonds     

Over the years, stocks did poorly and fell in value, while the bonds did well. 

Now, your portfolio would end up looking much different. You may now have a different mix 

40% of your money in stocks 

60% of your money in bonds

If you re-balance your stock:

When you rebalance, you will be reining in the assets that have overperformed – in this case bonds — and put more of your money into assets that have underperformed – in this case stocks. So, you are selling off expensive and potentially overvalued assets for undervalued ones that could take off in the future.

If you do not re-balance your stock

If you don’t rebalance your portfolio and get it back to your original mix, you will lose out when stocks that are out of favour suddenly come roaring back, because you won’t have as much of your money in stocks. And that could affect your returns if you missed out on enough of those opportunities over the long run.


 In case of any queries or to improve the quality of your portfolio, we are available at

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