Building a strong investment portfolio is only the first step. The real skill lies in managing it well over time — knowing when to stay patient, when to rebalance, and when to make changes. A good portfolio review process keeps you aligned with your goals, protects your returns, and prevents emotional decisions. Here’s how to approach it.
1. Review Once a Quarter — Not Every Day
Many investors check their portfolios daily and panic over every market dip. That’s counterproductive.
A sensible rhythm is to review your portfolio every 3-4 months. This gives enough time for your investments to play out, while ensuring you’re not drifting off course.
During each review, ask three key questions:
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Are my goals or timelines still the same?
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Has my asset allocation shifted significantly?
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Are any holdings consistently underperforming without a valid reason?
If the answers suggest imbalance, it’s time to act.
2. Rebalance When Your Allocation Drifts
Let’s say you started with 70% in equity and 30% in debt. After a strong year for stocks, that might shift to 80:20. Rebalancing means selling a little of what’s grown too much and adding to what’s lagged, restoring your original ratio. Most investors rebalance once a year or when the allocation deviates by more than 10–15%.
3. Know When to Exit a Stock or Fund
Not every investment deserves a permanent place in your portfolio. You may consider exiting when:
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A company’s fundamentals have weakened (declining profits, poor management decisions, rising debt).
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A mutual fund consistently underperforms its peers for 2–3 years.
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The stock has reached or exceeded your valuation expectations.
Avoid selling just because of short-term market noise - always make decisions based on fundamentals, not fear.
4. Keep the Process Simple and Disciplined
Portfolio review isn’t about frequent trading — it’s about staying intentional.
By reviewing quarterly, rebalancing when needed, and pruning only when justified, you’ll keep your portfolio healthy, balanced, and goal-driven — exactly the way good wealth grows.
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