Creating wealth from the scratch is not an easy task and what most people fail to realize is that managing wealth is one of the most difficult things to do. It is indeed more difficult than creating wealth itself. What is the use of having a diversified investment portfolio and yet you know nothing about managing them? You have the options of either outsourcing the management of your investment portfolios or you learn how to do it yourself.
Most investors take the pain to learn how to do it themselves rather than commit it to anyone. If you have the dream of having multiple investment portfolios, and you are doing all that lies within your power to make it happen, it is also advisable to learn how to manage these investment portfolios so that your investments wouldn’t just fizzle out into thin air. If on the other hand you have been able to generate various investment portfolios for yourself, it is not too late to learn how to manage them.
This is because if you do not know how to manage your investment portfolios, you stand the chance of being cheated by your partners and your bankers. So, here are 7 surefire tips to help you learn how to effectively manage your investment portfolio with less hassle.
7 Fail-Proof Tips to Managing Your Investment Portfolio Effectively
1. Create a Comprehensive List of Your Investment
Before you can effectively manage your investment portfolios, you are expected to first create a comprehensive list of your entire investment portfolios, so as to make it easier for you to have an overview of what you have and the amount you are generating from each of the portfolios. You can consult a software developer to help you design software that can make it easier for you to access your investment portfolios with just one click of the mouse.
The wisest thing to do if you have enough cash to invest in any business is to diversify your investments. In other to avoid going down just because the industry where your investment lies went down; you must spread your investments to cut across various industries. You can have investment portfolios in stocks, oil and gas, properties, maritime, education or any industry of your choice so as to stay afloat at all times.
This is so that when one or two of the industries experience a meltdown it wouldn’t be a sad blow. You might also want to remember that when the Real Estate and Stock market crashed few years back, many investors lost all they had and till date they have not been able to come out of the debts just because they placed all their eggs in one or shall I say two baskets.
3. Get a Monthly Update on Your Investment
Some very busy investors get to know about the status of their investments annually because that is the only time they get the reports. The fact that you are entitled to get an annual report on your investments shouldn’t stop you from requesting for monthly updates. Make it a custom to always request for monthly updates and ensure that you study the updates critically. Sometimes, getting the monthly updates of your investment portfolio can help you correct an anomaly and save you cost.
4. Share Your Concerns with Experts
It is not a crime to be wealthy and yet don’t have a comprehensive grasp of financial and investment terminologies. What is expected of you as an investor is to talk to an expert whenever you aren’t convince with the reports you get from your fund manager or when you can’t interpret certain graphs and statistics. Although, it might cost you some money to seek the services of experts, but you can be rest assured that the counsel you get would be worth the while. There are professionals that can help you forecast what might likely happen in the industries where you have your investments, and at this time advise you on how to handle imminent danger.
5. Attend Related Refresher Courses
To be on the top of your game in terms of managing your investment portfolio effectively, you should be able to attend refresher courses on investments and how to manage investment portfolios. This would to a very large extent expose you to things you need to do to expand your investment and things you need not do to avoid the risks that is common with investments. When you surf online, you would get information on available investments seminars and courses organized by top notch Business Schools.
6. Set Annual Goals
Since the essence of effectively managing your investment portfolios is to ensure that they are growing, the best thing to do is to set annual goals of the percentage increase that you expect from each of your investment portfolios. Setting goals for your investment portfolio would help motivate you to put in all the effort and expertise required to make it grow.
For instance; you could set a benchmark for the increase and a time frame you expect from a particular investment portfolio before you take a decision. The truth is that sometimes you might have to sell off an investment portfolio or a larger chunk of the equity when you realize that you have exhausted your time and resources and yet, you aren’t getting meaningful returns. Effectively managing your investment portfolio requires that you sometimes take drastic decision so that you can safe guard your other investment portfolios.
7. Review and Re-balance Your Investment Portfolios Annually
When you review your investment portfolio critically and you are able to know how each portfolio is performing based on the goals you set, you become well informed to know your investment that is not doing well and how much you need to pump into it, so that it can be at par with others. In some occasion, you may have to sell off some equities from some of your investment portfolios to finance new investment opportunities.
These 7 steps are just the basic that you need to be able to effectively manage your investment portfolios yourself rather than pay people to help you do it. The important thing here is that you must create time for continuous studying of any related topic that might help you achieve this. Start out today in managing your investment portfolios and you would be impressed at the tremendous progress you would make.
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