Ideally, you should not check your portfolio often when the market is sharply correcting itself. It isn’t good for your peace. But we understand that in such time you want to keep an eye on your investment profile. The availability of digital portfolios has made it hard to ignore the urge to look at the condition of your investment, but here what you need to remember is that the correction in the market is something that will happen you just need to be patient and not panic.

In case, you have just started investing, just sit back, relax, and keep on investing. In case of this year was the last which you decided to invest then stretch the time of your investment. You must not be concerned about your portfolio now and then. 

Don’t feed your emotions with numbers 

When the market falls, negative news starts to pass on which adds up the anxiety and fear in the minds of the investor. In such time, looking at your portfolio regularly will only increase your anxiety.

Ideally one must assess the portfolio return in context to the underlying benchmark and your return objective for a given period, based on your financial goals. Every other comparison is just your emotions, which are overwhelming you. 

And, one thing that you need to understand is that you can’t compare the portfolio return to your long-term return objective daily, because we know that market-linked investments are volatile whereas your goal is likely to be unchanged for a while. Hence, a daily comparison says nothing about whether your portfolio will be able to achieve what it has been set to do.

Now the question is, how often should you check your portfolio?

You can check your portfolio regularly or on some days based on your capacity to control your actions by being influenced by the market behavior. 

Also, the next important thing to consider while checking your portfolio is your cash flow. Your earning situation is directly going to affect your portfolio. In case, you lose your job either during this lockdown you would stop your investment or you would have to take a portion of money out of your investment to support you until you get the next job. 

Other such times could be when you get sudden cash inflows either from business income or inheritance. There could be times when you have to make large spends or your goal value changes or you are close to a goal manifesting, these are also appropriate times to check on your portfolio value. 

If you are one of those who are investing only to create wealth with no such long term goal or life event attached to your portfolio allocation, then you can fix a time in the calendar to do the review. Reviewing your portfolio too often can conjure up uncontrollable emotions leading you to the urge to act more when the need is really to act less.

Happy Investing 

A mutual fund is subject to market risk, please read offer related document carefully before investing.