Many investors when selecting investment products do not know how to keep track of their portfolios and how to act in bad times. Selecting and monitoring your portfolio are important activities to ensure good returns combined with less risk.
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The first step is to plan your portfolio: understand your investor profile and choose assets that are compatible with the level of risk you are willing to take and with your objectives. Then, the care is not to change the planning excessively, as this can lead to unnecessary costs and applications that are not consistent with your profile. The goal of having a long-term vision is to mitigate these risks and costs, in addition to aligning your investment with concrete goals that will allow you to accomplish something. Keeping goals in mind makes it more interesting and necessary to monitor progress than you planned. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Benchmarks are references that signal the general performance of a certain market. The most famous are the CDI for fixed income and the Bovespa index for shares. Analyzing profitability against the benchmark is important, as it is difficult to assess the performance of something without a clear metric. Investments that perform below the benchmark over the long term are usually discarded.
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Tracking investments should not be a tiring activity or one that demands too much of your free time. If this is happening, it is recommended to reassess your strategy for something simpler and that does not compromise profitability. If your primary activity is not investing your money, the time you must allocate to this cannot conflict with your effort to maintain your income.
