How to stay on top of your investments in 2024
7 things to consider to stay on top of your investments in the year ahead
The new year is as good a time as any to re-evaluate your investments. And if you haven’t made any investments yet, as the saying goes, the best time to start was yesterday and the next best time is today.
Whether you are managing your investments independently or seeking guidance from a financial expert, regular health checks of your investment preferences are important to make sure you are on track to meet your goals.
In light of the challenging year that investors faced in 2022-2023 and the ongoing economic hardships, here are some factors to consider to maintain the course of your portfolio.
Before going further, it is important to remember that when you invest, your capital is at risk. This means the value of your investments can go down as well as up, so you might get back less than you originally invested.
1. Defining your investment goals
Whether you are saving for short-term objectives or interested in long-term wealth accumulation, it is important to consider the timeline for your goals. This can help when you devise an investment strategy.
What major life events are you looking to fund? For example, educational expenses, home buying, retirement, etc. This can set the foundations for how much you should be investing, and in what. Evaluate the timelines for each goal and how much you need as a minimum to fund each one.
Your investment horizon influences aspects including the appropriate asset allocation and risk tolerance that may be suited for your portfolio.
2. Evaluating the level of risk are you comfortable with
Your risk tolerance plays an important role in shaping your investment strategy. This involves thinking about the likelihood of getting back a lower amount than your initial investment. It is not about the fluctuation patterns seen on the investment graph over its lifespan—that aspect is referred to as volatility.
If you plan to invest for a long time, you may afford to take a higher risk level than someone who needs to sell their investments soon.
A few things to consider are:
What is the length of time you plan to remain invested for
How much disposable monthly income do you have left after covering essential expenses
How do you feel about your investments increasing and decreasing in value
If you find that your risk appetite has evolved or if the turbulent market conditions have impacted your perception of risk, it may be time to adjust your investment approach.
A challenging year in investment returns alone may not warrant portfolio adjustments; however, shifts in your circumstances or goals might. If you find yourself advancing certain goals or, on the other hand, needing to postpone others, these changes could prompt a reconsideration of your risk tolerance.
3. Making regular contributions
Consider whether you are investing enough to reach your goals. Would you achieve a better outcome if you invested money regularly, rather than in lump sums?
Assessing your commitment to regular investments can help when exploring ways to optimise your strategy. Systematic and disciplined contributions to your portfolio, whether weekly, monthly, or quarterly, can help take advantage of market opportunities and foster long-term growth.
Evaluate the feasibility of automating your investment contributions to ensure a steady and uninterrupted flow. Consistent investments can also instil a sense of financial discipline, helping you stay on track regardless of market fluctuations.
4. Investing in companies that match your values
Beyond financial returns, your investment portfolio can reflect your values and beliefs. Take a closer look at the companies and industries in which you hold stakes. Consider whether these align with your values, ethical considerations, and long-term vision for a sustainable future.
With Stratiphy, you can select the industries and regions you want to invest in, and you can view each company in your portfolio for a more detailed look into their operations and analytics.
ESG ratings can also provide meaningful insights into companies’ Environmental, Social and Government practices.
5. Diversifying and rebalancing your portfolio
Diversifying your portfolio can be understood with the principle “don’t pull all your eggs in one basket”. Rebalancing could be seen as making sure that those eggs are still good ones.
Diversification can be applied across assets and asset classes. For instance, if you're investing in the stock market, you can diversify your assets by holding a variety of shares or ETFs.
Holding investments across a range of assets such as bonds, property, art, crowdfunding shares, P2P lending, and cash is diversifying across different asset classes.
Additionally, diversification can involve spreading investments across industries and national economies. For example, holding investments in global-facing companies or multiple companies situated in different countries and operating in various categories.
One of the main reasons to rebalance and diversify your portfolio is to guard against risk. Rebalancing your portfolio involves re-evaluating your investments and checking if they are still aligned with your desired outcomes.
In many ways, buying is the easy part. Following a strategy that helps you identify the best entry and exit points can save a lot of time while also ensuring industry best practices and investment fundamentals are taken into account.
Diversifying by ensuring you are invested in different sectors and other characteristics can lead to a more balanced and resilient portfolio.
6. Be aware of the fees you are paying
While you can't control market behaviour, you do have control over your costs. Common charges associated with investments and investment accounts include annual management fees, training transactions and account subscription fees.
Every £10 that goes on fees is £10 less than can be made as a return. Some fees may seem small but they can accumulate over time and in difficult market conditions, their impact can be more significant.
For example, if you are invested in any managed funds, have an individual savings account (ISA), or a self-invested personal pension (SIPP), an annual review of their charges is useful to see if it is still the best option for you.
7. Get started with Stratiphy
Get Stratiphy today and start investing with ease, taking into account your personal goals and values with a professional approach.