Saturday, March 2, 2024

These 4 Steps Will Empower You To Be a More Prepared and Confident Investor This Year

Whether you’re a retail, institutional, active or passive Investor, are you prepared for the financial year ahead? You may also find yourself making uninformed and rash decisions that don’t fit your investing strategy and won’t help you perform in the long run.

If you’re looking for some simple ways to improve your performance and strengthen your portfolio against market volatility, here are four ways Allymon can help you become a more prepared investor.


4 Steps To Be a More Prepared Investor This Year

1. Evaluate Your Investor Strategy

Whether it’s the beginning of the year and you’re looking to do an annual refresh of your strategy, or maybe you’re mid-way through the year and would like to rebalance your portfolio due to changes in market conditions. Whatever the case, it’s important first to get a picture of your portfolio’s asset allocation and diversification.

To determine your asset allocation, you can get a report, which shows how your portfolio is diversified across different investment types, markets, countries, industries and sectors. You also have the option to use your custom groups that reflect your specific investment strategy or asset allocation target.

4 Steps To Be a More Prepared and Confident Investor This Year

Once you have determined your asset allocation, you can get an analysis report to see how your asset classes are performing relative to each other. This can be done over a specific period of their choice and is a good way to evaluate the success of your investment strategy and see whether you need to rebalance your portfolio.

4 Steps To Be a More Prepared and Confident Investor This Year

If you’ve chosen to be an ETF investor, you can utilize another useful portfolio rebalancing tool. The report displays your portfolio’s exposure to different industries, investment types and sectors by listing your direct stock holdings alongside any stocks held within exchange-traded funds (ETFs). This also identifies any overlap in your portfolio, making it easier to diversify your portfolio by shedding any redundant stocks or ETFs.

4 Steps To Be a More Prepared and Confident Investor This Year

2. Track your portfolio against an Index

Once you have evaluated your investment strategy and rebalanced your portfolio if necessary, it’s a good time to start tracking your portfolio against a benchmark. For example, by benchmarking your portfolio against an index-tracking ETF, you can track your portfolio against market trends. This allows you to determine whether your portfolio’s performance can be attributed to market conditions or your own investment decisions.

Investors can benchmark their portfolio against any one of the 500,000+ stocks, ETFs, funds and unit trusts they support. They can add a benchmark on your portfolio’s Overview page and select the instrument that best reflects your asset allocation or investing strategy in conjunction with your KYC information. This makes it easy to see where your portfolio diverges from the benchmark. In this case, you may decide to alter your investing strategy or even invest your money in the benchmark ETF rather than continuing to pick stocks.