Maintaining an investment portfolio
The amount of time you spend keeping up with your investments will depend heavily on your goals, time horizon, and risk tolerance. Whether you’re an active investor or a set-it-and-forget-it type, you’ll want to follow the 3Rs:
Review your portfolio periodically. A daily or weekly review is too much for most people; keep in mind, market volatility is real and exists. But a monthly or even quarterly review of your investment performance can help you avoid some nasty surprises.
Research your investments. An email alert for every filing to the U.S. Securities and Exchange Commission (SEC) probably isn’t necessary for most investors. Keeping up with basic news about a company or sector where you have money, though, is a very good idea. In addition to mainstream publications, be sure to take a look at quarterly reports and any major announcements from an individual company.
Rebalance your portfolio. This doesn’t mean you should sell your holdings when there’s a downturn. As the old adage goes, time in the market usually beats timing the market. But be prepared to make changes. Not every investment in your portfolio is likely to work out to your satisfaction. Don’t fall prey to sunk cost fallacies.