5 essential steps to conclude a year-end evaluation of your financial portfolio

livemint.com:

investment portfolio is akin to making a pit stop on a lengthy road trip. It provides an opportunity to inspect your tires, replenish fluids, and fine-tune your route for the miles ahead.

Here is a systematic guide to assist you in navigating through your portfolio evaluation. Avoid diving straight into the intricacies of finance.

Begin by understanding the fundamental aspects of managing personal finances. Commence by evaluating your savings and debt.

Have you been consistently setting aside a fixed amount for your savings goals each month? If not, are there any modifications you can and should make to your budget or spending habits to enhance your savings rate? Additionally, are you progressing as planned toward achieving your debt payoff objectives? Have you been making punctual payments and considering alternatives that could potentially accelerate the process? If you have a clear understanding of your current savings or the shortfall in your savings, take some time to focus on your investments. Have your investments met your expectations this year? If not, consider the factors that may have influenced their performance.

Do you need to modify your investment strategy based on new information or your evolving goals? Now, assess whether your investments align with your risk profile. Are you at ease with the level of risk associated with your current portfolio? Have any shifts in your risk tolerance or priorities necessitate adjustments to your portfolio? Have macro events throughout the year altered your financial outlook? Have you introduced new financial goals? Will you achieve your target corpus as planned, or should you consider increasing your investments to attain early relief from the daily grind? Finally, don’t