When, Why, How Of Portfolio Review

When we review our portfolio, we typically compare investment A with investment B, check their performance, and if needed, weed out the non-performing ones. While that is relevant, what must be kept in mind is that our investment portfolio serves a bigger purpose. The review needs to be more holistic rather than an exercise where we just compare one investment with another. Know The Purpose Of Your Investment Portfolio The purpose of your investment portfolio is to serve your financial goals. It could be the oft-mentioned financial requirements, such as retirement corpus, purchase of assets, such as a house or car, children’s education or wedding, and so on. It could even be just one pool of savings or investment, without clear demarcation of the financial goals, which you will use to allocate to your financial requirements later in life. The objective of investing the savings is...