With New Year fast approaching, now is a good time to take a look at your investment portfolio and maybe even consider making some changes.
Carrying out regular portfolio reviews is crucial when considering the suitability of your investments and ensuring that any changes in your attitude to risk are accurately reflected.
Over time, your attitude to risk is likely to change. If you are approaching retirement, for example, you may want to preserve capital or generate an income, while if you are investing for growth, you may need to take on more risk to potentially boost returns.
These two factors can change considerably over time which is why it is important to regularly review and adjust your portfolio to reflect them.
It’s key to remember that the value of your investments and the income received from them may go down as well as up, meaning you may not get back the full amount invested.
As well as regularly reviewing the amount of risk taken in your portfolio, it is also important to make sure your portfolio remains as diversified as it can be and that it reflects any changes in your investment objectives. The key to building a diversified portfolio is to take a balanced approach. This means combining a range of investments that can help you meet your investment goals within an appropriate level of risk.
If you’re unsure about any aspects of your investment portfolio please do not hesitate to get in touch.