Why portfolio tracking is important (and complicated)

27 June 2022
Why portfolio tracking is important

Tracking your portfolio is more complicated than you might think. Not only are there many different types of assets that you may want to track (stocks, bonds, mutual funds, ETFs, cryptocurrency, real estate, etc), but there’s also the issue of concentration. It’s easy for small investors to become over-exposed to a particular security or asset class as they may not really know what else is out there, or how to diversify.

Introduction

When it comes to portfolio tracking, there are a few different things you need to take into account. First and foremost, you need to have an accurate representation of what your portfolio is worth. Secondly, you need to track how your portfolio is performing. In absolute terms and relative to market benchmarks. And you also want to understand how the contribution to that performance is split across your various investments. Finally, you need to stay up-to-date on the latest news and developments in the markets. So that you can make informed decisions about your investments.

While all of this may seem like a lot of work, it is actually doable once you get the hang of it. There are a number of different tools and resources available to help you track your portfolio. The most important thing is to find what works best for you and stick with it.

If you are serious about making money in the markets, then tracking your portfolio is an essential part of the process. By doing so, you will be able to make informed decisions about where to invest your money and how to best grow your wealth over time.

Tracking your portfolio’s performance

It’s important to track your portfolio’s performance so that you can make informed decisions about where to invest your money. However, tracking your portfolio’s performance can be complicated. In this blog post, we’ll discuss some of the things you need to keep in mind when tracking your portfolio’s performance.

One of these is the time frame that you’re looking at. Are you looking at your portfolio’s performance over the past week? The past month? The past year? It’s important to look at your portfolio’s performance over multiple time frames so that you can get a well-rounded view of how it’s doing.

Another thing to keep in mind is what benchmarks you’re using to compare your portfolio’s performance against. For example, if you’re invested in stocks, you might want to compare your portfolio’s performance against the S&P 500. If you’re invested in bonds, you might want to compare your portfolio’s performance against the Barclays Aggregate Bond Index. There are many different benchmarks out there, so it’s important to choose the one that makes the most sense for your investment strategy.

Finally, it’s important to remember past performance

Tracking your portfolio over time

It’s important to track your portfolio over time for a number of reasons. For one, it allows you to see how your investments are performing and whether or not they are meeting your expectations. Additionally, tracking your portfolio can help you spot trends and make adjustments to your investment strategy as needed. Finally, keeping tabs on your portfolio can help you stay disciplined and avoid making impulsive decisions that could jeopardize your financial goals.

That said, tracking your portfolio is no easy feat. There are a number of factors to consider, such as asset allocation, risk tolerance, and investment objectives. Additionally, there are a variety of tools and resources available to help you track your portfolio, which can be overwhelming to navigate.

The good news is that there are a few simple tips that can help make tracking your portfolio easier. First, start by creating a spreadsheet or using an online tool like Exirio to track key data points such as investment value and performance. Next, set up alerts so you can be notified of changes in your portfolio. Finally, review your portfolio regularly and make adjustments as needed. By following these steps, you can ensure that you’re staying on top of your investment goals and making the most of your hard-earned money.

Why it’s important to track your portfolio

It’s important to track your portfolio for a number of reasons. First, it allows you to see how your investments are performing. This information can help you make decisions about whether to buy, sell, or hold your investments. Second, tracking your portfolio can help you identify potential problems early on. For example, if you see that one of your investments is losing value, you can investigate the reasons. And take steps to mitigate the losses. Or decide to invest more, if a valuation has become more attractive . Finally, tracking your portfolio can help you develop and stick to an investment strategy. By understanding how your investments are performing, you can make adjustments to your strategy as needed.

How to track your portfolio

There are a lot of different ways to track your portfolio. And it can be complicated to figure out which method is best for you. But it’s important, to keep on top of performance and make sure that your asset allocation is on track.

One way to track your portfolio is to use a spreadsheet. You can set up a spreadsheet with all of your investment information, including the current value of each investment, the cost, and the return. This can be a lot of work to set up and maintain, but it’s an option always available to you.

An alternative is to use an online tool, like Exirio, which can automatically import your investment data and give you performance details. This is certainly a more convenient option. And as bonus, it’s packed with additional features, like document storage and third-party access which a spreadsheet doesn’t offer.

No matter which method you choose, tracking your portfolio is not optional. Much like your car’s lights while driving at night. Don’t you want to go where you are going, and make sure you stay on the road?

Conclusion

If you’re serious about growing your investments, it’s important to understand how portfolio tracking can help you take your investment game to the next level. So whilst the answer to the question of whether or not you should track your portfolio is categorically yes, there’s no one-size-fits-all answer to the tool one may want to use. If you are no Excel master, and you don’t have the time to update a spreadsheet manually, an online tool is the best option for sure. But which one of those available in the market? Personal Capital has been the benchmark for many years. But if your investments are in different currencies (not just US dollar) and you want the full performance history and detailed investment returns, Exirio is a better option.

Sure, we are Exirio so you may think we are biased. So why not taking a look yourself, with our Demo? You can see our tracker in action without an account, and make up your own mind.

Try our demo or register a new account

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