Portfolio Review

Risk Questionnaire

Portfolio review is designed to give investors a gauge of where they stand with respect to their stated investment objectives and portfolio risk and return. History has shown that proper Asset Allocation can be a significant element of overall investment performance.
Elements of Asset Allocation

Several factors are considered in determining an appropriate combination of investments. Age, tolerance for risk, and investor’s time horizon are just a few considerations in determining a well-matched allocation for investors. Other important factors include the interaction between different asset classes with one another.

Rebalancing

Once your personal allocation is determined, the next challenge will be to maintain that particular mix despite market fluctuations. This is achieved through rebalancing and can be done at different time intervals using certain investments. The importance of rebalancing is illustrated below.
Suppose your particular mix was made up of 20% Investment A, 50% Investment B, and 30% Investment C. Your allocation would look like this:

Now suppose that Investment A grew disproportionate from the rest of the portfolio and now made up 60% of the overall portfolio. Your account would look like the pie chart below. Consequently, investment A makes up 60% of the portfolio while Investments B and C are priced more reasonably(fix).

Rebalancing the account would provide the opportunity to sell Investment A and purchase Investments B and C. Moreover, maintaining one’s appropriate allocation weighting is the hallmark to disciplined investing.

Is Your Portfolio Properly Allocated?

Factors such as, Market fluctuations, changes in your personal life, and time could require you to reassess your current investment portfolio.
Below is a questionnaire for you to complete if you would like to have your current portfolio evaluated. First, begin with the risk questionnaire and complete the breakdown of the different asset classes you hold.

Risk Questionnaire