How often should you check your investment portfolio?
 
It is natural to want to monitor your portfolio value, but how often is too often? Is there any real benefit in checking your investment returns daily, weekly, or even monthly?
 
Did you already do a check-up on your investment portfolio value this morning? If you did, and do so just about every day, you're certainly not alone.
 
After all, it's human nature to look regularly at what financial markets have been doing and how your specific investments have performed. And it’s so easy to do these days through online financial platforms and mobile apps.
 
Vanguard Australia recently surveyed more than 1,000 Australian investors and found 28% of respondents check their investment returns every day.
 
A similar percentage of investors check their returns weekly, and about 20% check theirs monthly. Less than 10% of investors look at their returns less frequently.
 
That's almost 60% of investors who look at their returns at least weekly, and another 20% who check every few weeks.
 
But how often is too much? Is there any real benefit in checking your investment returns daily, weekly, or even monthly?

What's your investment strategy?

Short-term market events can be unsettling, especially when part of your money is invested in growth assets such as shares, even if invested in “blue chip” companies.

Take last year for example, when financial markets fell more than 35% over just a couple of weeks as investor panic set in over the spread of Covid-19. People who checked on their returns daily (even multiple times a day) or weekly at that time would have seen their portfolio fall very sharply, depending on the level of risk they were taking.

However, if they stayed invested, just over 12 months later, the Australian and other key Global share markets are trading near record highs and their portfolio value higher than pre Co-vid levels. .

The key lesson here is that, irrespective of short-term events, it's always important to stay focused on your medium to long-term investment goals and your overarching strategy to achieve them.

There's nothing inherently wrong with checking your investments daily, weekly or monthly. However, the most important thing to do as an investor is to stay disciplined and remain focused on the longer term.

Successful investing revolves around having a well-planned and diversified strategy that's aligned to your specific goals, and the resolve to stay on track even during volatile investment periods.

Investors who stay the course over time, riding through the regular ups and downs of the markets, have a much better chance of achieving investment success than those who take short-term positions and try to time when to buy and sell.

 

Please contact us if you have any questions.


Kind regards,

The Coastline Private Wealth Team.

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