Cash or Trash - Know your portfolio

17 Feb 2020

Do you know what you are invested in and how your portfolio is performing? As an investor you have a financial adviser that takes care of investment choices, and apart from knowing how much money you have invested, you generally have no idea what your funds are composed of.

Do you know if your funds are performing or if it is time to switch? Funds that were performing in the past might be declining, or there are new funds that are better suited to your investment needs.

Just like you go to the doctor for a regular check-up, so also you need to have a regular check up on your financial situation.

Below are things that you need to check with your adviser on a regular basis.

•    What funds are you invested in? – Although you are not technically minded, you need to have a basic idea of what funds you have and what they are invested in.
•    Do you know what the fund fees are? – The funds you are invested in could have high admin and annual service fees. There could be cheaper funds out there that are performing the same as your current one. High fees could add up to thousands in the long run.
•    Are they actively or passively managed? - There are advantages to both kinds. Actively managed funds are monitored by fund managers who make regular adjustments to ensure you get maximum returns. Passive funds tend to follow the market index and are generally cheaper. (this does not mean they perform worse than actively managed funds)
•    When was the last time you had a full financial overhaul of your portfolio? – Often annual reviews are just to see if your needs have changed and don’t necessarily focus on current funds. A good adviser should analyse all these aspects for you.
•    Do you know what your risk profile is for your investments? – Can you remember what risk appetite you chose for your investments? You might be getting closer to retirement and need to adjust your risk profile.
•    Do you know how diversified your portfolio is? You need to have an idea of where your funds are invested. Are they spread out over different economic and geographical regions and asset classes in order to mitigate risk? 
•    Are your investments long or short-term? Your investment period will determine what type of funds you should invest in.

A good financial adviser should be covering all these aspects on your reviews. deVere Acuma prides itself on its many years of experience and knowledge in the financial services industry.

Chat to your deVere Acuma adviser about giving your investment portfolio a full overhaul so you can understand the basics of your investments, or email [email protected] to find the nearest deVere Acuma office.

Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere Acuma adviser for a personal consultation.

* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.