Monitor your investment performance from "summary" of All About Index Funds by Richard A. Ferri
To properly manage your investments, it is essential to keep a close eye on how they are performing. Monitoring your investment performance allows you to track the progress of your portfolio and make informed decisions about any necessary adjustments. By regularly reviewing the performance of your investments, you can ensure that you are on track to meet your financial goals and objectives. One way to monitor your investment performance is to regularly review your account statements. These statements provide detailed information about the value of your investments, any dividends or interest earned, and any fees or expenses incurred. By carefully examining your account statements, you can gain a better understanding of how your investments are performing and identify any areas that may require attention. In addition to reviewing your account statements, it is also important to compare the performance of your investments against relevant benchmarks. Benchmarks are used to measure the performance of a particular investment or investment portfolio against a standard index or other similar investments. By comparing your investment performance against a benchmark, you can determine whether your investments are outperforming or underperforming relative to the market. Another important aspect of monitoring your investment performance is to regularly reassess your investment objectives and risk tolerance. As your financial situation and goals may change over time, it is important to periodically review and adjust your investment strategy to reflect these changes. By reassessing your investment objectives and risk tolerance, you can ensure that your investment portfolio remains aligned with your long-term financial goals.- Monitoring your investment performance is a critical aspect of managing your investments effectively. By regularly reviewing your account statements, comparing your performance against relevant benchmarks, and reassessing your investment objectives and risk tolerance, you can stay informed about how your investments are performing and make any necessary adjustments to ensure that you are on track to achieve your financial goals.
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