Review and revision of your portfolio

Review your portfolio

Nov 21, 2022

Gone are the days when an investor could take a “Set it and forget it” approach. Or perhaps those days never really existed, but investors were comfortable with their returns and saw no need for a periodic review of their investments or rebalancing of their portfolios. One would simply invest funds and leave the investment until maturity. This approach may have provided investors with what they considered acceptable returns but would not have maximized the earning potential of their portfolios.

In recent times, market volatility across all asset classes has forced investors to pay more careful attention to their investments. Investors are now more inclined to review their investment portfolios periodically to protect themselves against devastating losses. However, this also allows for the investor to look for opportunities as they arise. Volatile markets can threaten the value of our investments but can also present investment opportunities.

For investors to identify both the threats and opportunities, it is important that investments are monitored continually, and adjustments made as needed. The first step is to clearly identify our goals to determine what investments will best aid in achieving these goals. Once goals are clearly defined, we can better assess our current investments and identify opportunities and threats. As market conditions change, we can monitor the investments within our portfolio to ensure that they are still aligned with our goals as well as to determine if there are greater opportunities. If better opportunities are identified, then the prudent approach for the investor is to adjust their portfolio. This will maximize earnings and better aid in achieving financial goals. 

Setting a timely review schedule will help to maximize the earing potential of your investment portfolio and help to mitigate against losses. Meet with your licensed financial advisor to determine the frequency of review needed, given current market conditions. Once the review intervals have been decided, be sure to meet with your advisor as scheduled. Your advisor will provide you with market updates and make recommendations for any changes to be made. You should also let the advisor know if there have been any changes to your financial goals which will guide them in making recommendations for your portfolio.

Periodic review and rebalancing are very important especially in times of high volatility. These will help you the investor mitigate against possible losses and will also highlight opportunities which arise. Doing these on a continuous basis will help to ensure that you achieve your financial goals in the shortest possible time.

Dwayne Neil, MBA, is the AVP, Personal Financial Planning at Sterling Asset Management. Sterling provides financial advice and instruments in U.S. dollars and other hard currencies to the corporate, individual and institutional investor. Visit our website at www.sterling.com.jm Feedback: if you wish to have Sterling address your investment questions in upcoming articles, e-mail us at [email protected]

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