When Does Your Portfolio Need Review From a Professional Stock Market Advisor?

The unpredictable nature of the stock market makes it a unsafe arena where you need to invest your money smartly. Once you start investing in the stock market, you must put your energy and time into managing your SIP (Systematic Investment Plan) along with your monthly budget and savings. At the initial state of earnings, it is pretty easy to allot money from revenues for expenditure, stock investment, and savings. When your returns and capital gains through stock investment increase, there will be more financial risks related with stock investment. In such situations, an individual requires expert assistance to avoid financial blunders; this is where they need the help of a stock market advisor. 

A professional stock market advisor reviews your portfolio and recommends a personalised investment plan per your future needs and keeping risks in mind.

Why Reviewing Your Financial Portfolio Important?

Following are some important reasons why it is vital to review your financial portfolio regularly. 

Portfolio Health Check

Reviewing your investment portfolio is similar to performing an annual health checkup. Likewise, an investment portfolio review informs you about your fund allocation. It helps to ensure that it is aligned with your goals, the investment horizon is being followed, your financial status is as expected, and your total risk tolerance has not been exceeded.

Asset Class Performance

A portfolio review can assist you in comparing the success of your investments to the market performance of similar asset groups. You may also compare the performance of your assets to their benchmark to determine if it is worth continuing investing in the asset or fund. If an asset or fund has been underperforming compared to its benchmark and peers for some time, it may be time to exit and seek alternatives. 

It Rebalances Portfolio

A periodic portfolio review allows investors to adjust their investments to align with their financial goals. If you opted for 60% asset allocation in equities and remaining in bonds, your budget may successfully increase to 70%. Hence, you need to sell some shares to balance your portfolio as per previous allocation level. 

When Is The Right Time To Review Your Portfolio?

Post Investment Goal Changed

A stock investor needs to adopt a smart investment strategy keeping the financial goals in mind. Performing a portfolio review is vital if there is a shift in the end goal. There could be numerous deviations, including an increase or decrease in expenses, unforeseen financial urgencies, a medical emergency, home renovation or a sudden surge in returns. Any fluctuation can impact future goals, whether a huge return gain or an urgent financial need. Therefore, keeping your investment portfolio aligned with the current scenario is crucial. 

When you are paying huge taxes

If an individual has to pay a considerable tax on capital gains or ROI, you must seek assistance from your stock market advisor for proper investment planning. Additionally, when an amendment is made in tax law or regulations associated with a specific asset class, investors must consult with a stock market advisor. A professional will help you determine how it will impact the returns, capital gains and allocation so that they can adjust their asset allocation accordingly. 

Market volatility

The stock market frequently fluctuates as per economic shifts or amendments in the government’s monetary policy, and such market volatility significantly impacts an investor’s portfolio. When such market fluctuation occurs, it is recommended to get assistance from a stock market advisor. They review the portfolio to determine if the current market situation will affect your future gains and what measures should be taken to lessen the impact of market volatility. 

Portfolio Rebalancing

Portfolio rebalancing is frequently required per market changes and investors’ personal financial needs. It is often essential to seek the assistance of an expert when making modifications to the asset mix. 

Financial Year Change

An investor’s risk tolerance capacity, financial situations, investing objectives, and general market conditions may vary over time. It necessitates a review of the investment portfolio to verify that the investor is on track to meet the financial objectives.

How to choose the right financial advisor?

Stock investment is standard practice, and when it comes to investing in the stock market, financial goals and risk tolerance differ from investor to investor. So, choosing the right financial advisor depends highly on the need. If an individual needs to align their finances properly, they must seek assistance from a financial planner. On the other hand, if you need to manage your investment portfolio as an investor, then you need help from a professional stock market advisor. The market is packed with plenty of alternatives to choose from. Stockify is one such reputed and trustworthy stock investment advisor that can provide thorough assistance with your investment portfolio.

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Stock investment advisors can draw up plans or recommend specific investment products to meet your financial goals.


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