Step Five: Monitor Your Investments
In addition to rebalancing your portfolio, you'll also want to keep tabs on your individual investments. It's important to make sure your investments are still filling their original roles in your portfolio.
What types of things are you looking for? When investing in funds, for example, you'll want to make sure your funds stay in the same investment category; if a fund's style has changed dramatically, the fund may no longer meet your needs. You can use research tools such as Morningstar's Investment Style Box for this type of analysis.
With stocks, you may want to keep tabs on price and where that price is relative to any sell targets you've established. Changes at the top matter, too--new management can mean new strategy. Profitability, financial health, and growth prospects all matter, too. The wealth of information available in the Quotes and Research section of the client website - including research reports, fundamentals, earnings and financials - provides the information you need to stay on top of your investments.
These five steps, which can be implemented through Scottrade Portfolio Manager, offer you a way to take control of your portfolio and help achieve your investment goals.
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The analytical tools described in this article are for information purposes only and their use does not guarantee a profit. None of the information provided should be considered a recommendation or solicitation to invest in, or liquidate, a particular security or type of security. Investors should fully research any security before making an investment decision.