Learn simple strategies for monitoring your investments, perfect for beginners. Discover how to use an investment tracker, set clear goals, and stay informed to make smart financial decisions.

Rahul is a newbie investor, juggling a few stocks, some bonds, and considering mutual funds or ETFs. Between his job, personal life, and learning the investment ropes, he’s struggling to keep track of his portfolio. He often worries he’s missing crucial market news or if his investments are performing well. Sound familiar?

If you’re like Rahul, you’re not alone. Monitoring investments can be daunting, especially for beginners. But don’t worry! With the right strategies and tools, it’s much easier to manage. Here, we’ll break down some simple strategies to help you stay informed and make smart financial decisions

Pitfalls of Neglecting Your Portfolio

If you have a garden, you wouldn’t plant tomatoes and forget about them, right? Without water, sunlight, and the occasional chat to encourage their growth, your garden would turn into a sad patch of weeds. Similarly, neglecting your investments can lead to lacklustre performance and missed opportunities. So, give your portfolio the attention it deserves with these ten simple strategies to reap good returns.

Step 1: Investments Tracker – The Essential

First things first, you need an investments tracker. An investments tracker consolidates all your investments in one place, making it easier to monitor performance and make informed decisions. Setting up your investments tracker is a crucial step for beginners in investing, as it allows you to see how your money is growing (or not) and adjust your strategy accordingly. You may use spreadsheets or apps which are among the most popular tools for tracking investments.  Choose one that fits your style; be it sleek and modern or old-school with plenty of charts and graphs.

Step 2: Nail Down Your Investment Goals

When investing for beginners, set clear investment goals. Your goals will determine your investment horizon and risk tolerance.  Are you saving for retirement, buying a dream house, or simply trying to amass a small fortune to fund your world tour? Having clear goals will help you assess whether your investments are on the right path. Remember, vague goals like “I just want to make money” are as useful as a chocolate teapot. 

Step 3: Regular Reviews You Can’t Skip

Regularly checking your investments is as important as checking the expiry date on your milk. You don’t want to wait until it’s too late. Schedule monthly or quarterly reviews of your portfolio. Use this time to evaluate performance, check for any sneaky fees, and rebalance if necessary.

Pro tip: Set calendar reminders so you don’t conveniently “forget.”

During these check-ins, you should also review news about the companies you’ve invested in and broader market trends. If a particular stock is underperforming, investigate why before making any decisions.

Step 4: Diversify, Diversify, Diversify

Don’t put all your eggs in one basket. This age-old wisdom applies perfectly to investing. Diversification helps spread risk across various assets, reducing the impact of a poor performer on your overall portfolio. If one asset class underperforms, others may compensate, helping to stabilize your overall returns. Beginners in investing should consider mutual funds or ETFs, which offer built-in diversification. These funds can provide exposure to a wide range of industries and geographies, reducing your overall risk.

Moreover, review your portfolio allocation regularly to ensure it situates with your risk tolerance and investment goals. For instance, as you approach retirement, you might want to shift from a growth-focused allocation to a more conservative one.

Step 5: Stay Informed, Not Overloaded

Staying informed about market trends is essential, but there’s no need to turn into a financial news junkie. Subscribe to a couple of reputable financial news sources and maybe follow a few finance influencers who speak your language (and make you laugh). This way, you stay updated without drowning in information overload. Remember, you want to be informed, not overwhelmed. Additionally, reading books on investing and following reputable financial blogs can deepen your understanding of market dynamics and investment strategies.

Step 6: Delegation With Automation

Automating your investments can save time and reduce the emotional rollercoaster of manual investing. For beginners in investing, automation can also help instill discipline by ensuring you consistently invest a portion of your income, regardless of market conditions. Most platforms allow you to set up automatic contributions and even automatic rebalancing. This way, your portfolio gets regular attention without you having to lift a finger.

Step 7: Don’t Panic, Keep Calm

Remember that investing is a marathon, not a sprint. Markets go up, and markets go down. It’s their nature. The key is not to panic during downturns. Don’t be tempted to sell off your investments in frenzy. Abandoning your ship at the first sight of a storm is not the best strategy for a long voyage. Historical data shows that markets tend to recover over time, so staying the course is usually the beneficial.

Step 8: Use Technology to Your Advantage

Leverage the power of technology to stay on top of your investments. There are numerous apps designed to help you track, analyze, and optimize your portfolio. Some even offer robo-advisors that provide automated, algorithm-driven financial planning services with little to no human supervision. These tools can provide insights and recommendations based on your investment goals and risk tolerance. Investing money for beginners can be overwhelming, but these technologies can simplify the process by offering personalized advice and monitoring your investments around the clock. Mojek Money is one such app that helps you get a grip on your finances.

Step 9: Rebalance

Rebalancing is the process of realigning the weightings of your portfolio. It involves periodically buying or selling assets to maintain your desired level of asset allocation. For instance, if your initial investment was 60% stocks and 40% bonds, but due to market changes it’s now 70% stocks and 30% bonds, rebalancing would bring it back to your original allocation. This step can prevent a beginner’s portfolio from becoming overly risky or too conservative.

Step 10: Celebrate the Wins

Don’t forget to celebrate your investment milestones. Made it through your first year of investing? That’s a win! Did your portfolio grow despite a market dip? Celebrate that too! Recognizing your successes, no matter how small, can keep you motivated and engaged.

Conclusion

Investing money for beginners doesn’t have to be a stressful endeavour. With the right strategies for monitoring your investments, you can take longer strides with confidence. Use an investments tracker, set clear goals, stay informed, and automate where possible. Diversify your portfolio, keep your cool during market fluctuations, and regularly review and rebalance your investments. By embracing these strategies, you’ll not only keep your investments on track but also enjoy the journey to financial growth.