To Monitor and Evaluate the Performance of your Investments, You can follow these steps:–
1] Set a Benchmark:- Decide on an Appropriate Benchmark such as a stock market index or the average return of similar Investments to compare your Investment’s performance.
2] Track your Portfolio Regularly:- Keep a record of the value of your Investments over time , and regularly check the performance of each individual Investment.
3] Calculate your Returns:- Use a Simple formula to calculate the return on your Investment, such as (current value – original value) / original value.
4] Compare with Benchmark:- Compare your Investment’s returns with the Benchmark to see If it is performing better or worse than the average.
5] Consider the Market Environment:- Take into Account Factors such as the overall Performance of the market, Interest rates, and Economic conditions to understand the context of your Investment’s Performance.
6] Rebalance your Portfolio:- If necessary, Adjust your Portfolio to ensure that it continues to align with your Investment goals and Risk tolerance.
7] Seek Professional Advice:- A Financial Advisor can help you evaluate your Investment Performance and provide insights on how to improve it.
In Summary, Monitoring and Evaluating the Performance of your Investments involves setting a benchmark, tracking your portfolio regularly, calculating your returns, comparing with benchmark, considering the market environment, rebalancing your portfolio and seeking professional advice