InvestorQ : How important is to monitor your portfolio on a regular basis.
Riya Dwivedi made post

How important is to monitor your portfolio on a regular basis.

Answer
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Mahima Roy answered.
2 years ago


Remember, there are 2 sides to the investment game viz. return and risk. If you are earning good returns on your portfolio but the risk of your portfolio is too high, you have to change course. Always evaluate your portfolio returns on a risk-adjusted basis. Also ensure that you are constantly evaluating whether there are any disasters waiting to happen in your portfolio. For example; are there are companies in your portfolio which are highly leveraged? Are there companies whose business models are likely to be hit by disruptions? Are there companies in your portfolio which are commodity based and hence dependent on the super cycle? Are there companies in your portfolio that are losing out to competition both in terms of market share and profit margins? Each of these points is a risk highlighter and must be acted upon immediately. An understanding of basic philosophy will help you get more value from your long term investment. It will help you actually generate wealth over the long term!