Review your investments regularly to make sure you’re on track to reach your financial goals and you’re comfortable with the investment risks.
Find out how to review your investments’ performance and what to do if you’re not getting the returns you expect.
Monitor your investments regularly
How often you review your investments will depend on:
- your financial goals
- how long you’re planning to invest
Defensive versus growth assets
Defensive assets include savings accounts, term deposit and fixed-interest investments like bonds. When you receive a statement, check income (for example, interest) is being paid and the value of your capital hasn’t changed too much.
Growth assets include property, shares and managed funds. They are more volatile and it’s best to review them once or twice a year. For example, for shares, around the time semi-annual and annual reports are released. Over-tracking may lead to over-trading. This can result in selling when markets fall and not sticking to your investing plan and investing time frame.
Review your investing plan
It’s important to review your investment plan once a year. Check your investments are still in line with your financial goals, risk tolerance and investing time frame.
Ways to monitor your investments
You’ll need to monitor different investments in different ways.
Key ways to monitor your shares:
- Set up a ‘watch list’ for the shares you own. You can do this through the Australian Securities Exchange (ASX) or your online broker platform. This will help you track share prices, dividends and price sensitive announcements.
- Review semi-annual and annual reports. These tell you about the company’s performance, important changes, and expectations for the coming year.
For more information, see keeping track of your shares.
To monitor an investment property’s performance:
- Use real estate websites to review the prices of similar properties that have sold.
- Monitor monthly housing price updates published by CoreLogic and the Australian Bureau of Statistics.
- Monitor auction clearance rates online or in newspapers. These tell you the percentage of properties sold at auction and show the strength of the property market.
If you invest in a real estate investment trust (REIT), monitor it the same way you monitor shares.
Investment performance warning signs
It’s difficult to tell if an investment will perform poorly. But there are warning signs that you can look out for.
Financial and accounting problems
Watch for mistakes, delays and media controversy over financial accounts. Genuine errors happen, but repeated accounting issues can be a sign of more serious problems.
Frequent changes of a company’s board, directors and management can be a warning sign. Another sign can be directors and managers selling their shares in the company.
Company announcements will show changes in a company’s management and director holdings. You can find these on the ASX, the company’s website or through your online broker platform.
The Australian Securities and Investment Commission (ASIC) and the ASX can ask issuers of investment products to publish statements clarifying or correcting information given to investors. These public statements can be a sign of issues within the company or their reports, so read them carefully.
Keep an eye on ASIC media releases.
When to sell your investments
It’s important to not panic and sell an investment when the price has fallen. Before you sell an investment, take the time to review it. Check if it can still help you to reach your financial goals and if you’re comfortable with the risks involved. If you are, it may be better to hold on until the price rises again.
Your financial adviser will be able to assist at any point if you have any queries regarding your investment portfolio. Contact us on 1300 79 80 38 to discuss your investment strategy.
Contact us on 1300 79 80 38 if you have any questions about investing or speak to your accountant if you have any tax queries.
If you’re considering a sea-change or tree-change and would like to discuss your finance options, call us on 1300 79 80 38.
If you would like assistance getting your accounts under control as we approach the end of financial year, call us today on 1300 79 80 38.
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At Assure Wealth we specialise in helping busy, successful families structure their finances to achieve greater wealth and financial peace of mind.
Disclaimer: The information provided on this website has been provided as general advice only. We have not considered your financial circumstances, needs or objectives and you should seek the assistance of your Walker Lane Pty Ltd Adviser before you make any decision regarding any products mentioned in this communication. Whilst all care has been taken in the preparation of this material, no warranty is given in respect of the information provided and accordingly neither Walker Lane nor its related entities, employees or agents shall be liable on any ground whatsoever with respect to decisions or actions taken as a result of you acting upon such information.
Assure Wealth Pty Ltd ABN 31 965 466 780 Corporate Authorised Representative no. 1244817, Patrick Casey Sub-Authorised Representative no. 1244748 of Walker Lane Pty Ltd ABN 70 626 199 826, an AFSL holder No 509305.