Course 301: How to Monitor Your Portfolio, Part 1
Your Monitoring Procedures
In this course
1 Introduction
2 Your Monitoring Procedures
3 Monitoring the Characteristics of Your Portfolio
4 Monitoring the Fundamentals of Your Mutual Funds
5 Monitoring Performance

Those of you who've created an Investment Policy Statement have already developed your monitoring procedures. In doing so, you answered the following:

  • What is my target allocation for each asset class (stocks, bonds, and cash)
  • How often will I monitor my portfolio?
  • How will I determine how well my investments are doing?
  • How will I determine how well my overall portfolio is doing?
  • Is my portfolio meeting my expected return?
  • What fundamental criteria will I focus on as I review my holdings?
  • How often will I rebalance?

If you haven't developed your monitoring procedures or created your Investment Policy Statement, review Portfolio 108 and download Morningstar's Investment Policy Statement Worksheet at http://news.morningstar.com/pdfs/Investment_Policy_Worksheet.pdf. (Note: The worksheet is available as a PDF file. You will need Adobe® Acrobat® Reader to view and print it.)

As you can see, tracking your portfolio means more than just monitoring its performance. It means keeping an eye on your portfolio's characteristics, too. And it requires you to make sure that the fundamentals of your individual investments haven't changed since you bought them.

Next: Monitoring the Characteristics of Your Portfolio >>

 
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