Question

Why is it important to continuously manage and control your portfolio? Explain.

Answer 1

There are various reasons as to why portfolio needs to be managed continuously:

1. Hedge Risk or Risk Minimisation: Continuously assesseing the risk of the investment and manageing portflio helps in hedging the risk.

2. Investment Decisions: It might be the case that your risk taking capacity have changed over the years and hence portfolio needs to be redefined for correct investments.

3. Returns: By properly managing the portfolio, you can avail the best return from the market.