Interactive Investor

Quick guides

Investment portfolio review

Don't buy and forget. Make sure your investments are still on course.

How to review your portfolio

Monitor investment performance

Look to review your portfolio at least every six months. If any of your investments aren’t doing what you wanted them to, investigate why, it may be that you consider selling them. You don’t have to hold on to poor performing investments.

Keep an eye out for alternatives

If you find a share or fund that offers the potential to perform better than one of your existing investments, consider switching. 

Rebalance your mix of investments

Over time, some investments will do better than others, so you need to check your Asset Allocation and rebalance if necessary/desired.

Keep an eye on costs

Always keep a close eye on the costs you are paying. For example, if you have an active fund which essentially tracks an index, you might be better off with a tracker fund, since the costs are generally lower.

Review levels of risk

Balancing risk and reward is critical to achieving your goals. One good strategy is to reduce risk levels the closer you get to withdrawing and using your money.

Set targets

One way of deciding the right time to sell your shares is by setting a target level. You don’t have to sell, but it does act as a reminder to review the situation.  

Before you buy or sell

Be patient

A share might not move for many months after you have bought it. Even highly recommended shares might stall for a while. Always keep in mind the reason why you invested and the time horizon you set.

Don’t get emotionally attached

Just because you once worked for a company or regularly shop at a certain store , or just really like a stock for another reason, doesn't necessarily mean the business is a good investment.

Things to look out for 

Similar to when you are researching investments, if company directors are buying shares in their own company, it could be a good sign. Read other brokers’ views and keep an eye on market news and reports.

What else can affect investment performance?

  • Global stock market trends
  • Domestic economy's performance
  • Share price momentum
  • Seasonal consumption
  • Shifts in technology
  • Changing consumer habits 

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These articles are provided for information purposes only. The content is not intended to be a personal recommendation. The value of your investments, and the income derived from them, may go down as well as up. If in doubt, please seek advice from a qualified investment adviser.