ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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can be an expensive and time consuming process.
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is just as important as reviewing your personal and financial goals.
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should be avoided because it gives you too many opportunities to change your mind.
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is generally a waste of time because few people change their minds about what they want to do.
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Detailed explanation-1: -You should monitor the performance of your portfolio and restore its original balance at least once every year. However, the problem is, Manish is a medium risk taker and his equities portfolio has gone up making his portfolio riskier than what he likes.
Detailed explanation-2: -Regular Portfolio reviews are a great opportunity for you to assess your progress toward your financial future, and ensure your portfolio hasn’t drifted away from the asset allocation that best matches your risk tolerance and time horizon.
Detailed explanation-3: -#1 Gather Everything In One Place. This first step in any review process is to track down every piece of financial asset you hold and to list them in one place. #2 Set Your Expectations. #3 Assess Your Portfolio Returns. #4 Study The Constituents.
Detailed explanation-4: -Sell high-performing investments and buy lower-performing ones. Allocate new money strategically. For example, if one stock has become overweighted in your portfolio, invest your new deposits into other stocks you like until your portfolio is balanced again. 29-Nov-2022