Q&A with Apricot: How often should I review my investment portfolio?

Today, we will address a common question among beginner investors: How often should you review your investment portfolio?

The correct frequency for reviewing your portfolio depends on your personal strategy. For long-term investors, constantly following daily market changes is generally not ideal as it can lead to emotional decisions, such as panicking and selling or buying a security.

Passive Investors with a Long-Term Investment Horizon

If you are investing for long-term goals such as retirement, funding a child’s education, preserving capital, or similar objectives, you can review your portfolio every few months or semi-annually. The main goal in this case is portfolio rebalancing. We discussed this topic in detail in a previous post.

Active Investors with a Medium-Term Investment Horizon

If your investment horizon is a few years or if you actively follow the market, you can review your investments quarterly or more often in order to respond to company earnings reports or macroeconomic changes.

Active Investors and Traders

Active investors and traders seek to profit from short-term price fluctuations, so even one minute can be important to them. Depending on their strategy, they may monitor and review their portfolio daily or multiple times throughout the day.

What to Focus on During Review

Regardless of how often we review our portfolio, the following should be taken into consideration:

• Asset Allocation Ratio | If it has deviated from the initial goal, rebalancing is required to reduce risk.
• Diversification | Have we diversified our portfolio by distributing assets among different types of securities, sectors, and geographic regions?
• Goal Alignment | Have our financial goals or investment horizon changed? For example, were we saving for early retirement and have decided to extend or shorten that timeframe? Based on this, the risk profile of the instruments in which we invest may change.

When reviewing the portfolio, it is best to focus on the objective rather than making decisions based on emotion or panic.

Ready to Start Investing?

Open a brokerage account for free and download our Apricot app from the App Store or Google Play. Learn more about investing inApricot Academy. 

It’s important to remember that investments are subject to market fluctuations and carry inherent risks. Consider your financial goals and risk tolerance before investing.

Apricot Capital is regulated by the Central bank of Armenia.

*The examples in this text are for illustrative purposes only. This does not constitute investment advice or a recommendation to buy or sell any specific investment instrument. The past performance mentioned in this text is not indicative of future results.