A lot of investors have started investing during the pandemic but many of them fail to monitor their portfolio carefully. There are many advantages to monitoring your portfolio and if one does it carefully, he can reap maximum benefits from the stock market and maximize returns in the long run. Portfolio monitoring is equally important for traders and investors.
One must be constantly updated about the latest happenings in the stock market and with the advent of technology and internet, this has become extremely easy. The core idea behind monitoring stocks efficiently is keeping a track on the company’s performance, news, credit ratings etc. as opposed only to stock price movements.
There are numerous ways to monitor stocks of the companies. Let us discuss some ways to monitor your investments to ensure that you meet your financial goals-
1.Study the quarterly results of the company
According to various rules and regulations, companies have to submit their quarterly results to the stock exchanges. Ensure that you analyze the quarterly results of the company and study the financial performance of the company in detail.
You can study the financial parameters of the company and look at the potential of the company. Keep in mind the general economic scenario of the company so that you can make a correct analysis and identify whether the company is at par with the market or not up to the mark.
2.Establish benchmarks
To evaluate the performance of your portfolio, you must establish a weighted benchmark that is consistent with your target allocation. From time to time, you must conduct an analysis of your earnings against your benchmarks. You must also track your overall accumulation progress against the various goals set by you in your financial plan.
3.Anticipate the unexpected changes
If you as a trader or investor (including prospective traders and investors) observe a sudden rise/fall in the stock price of a scrip, you must investigate the reason behind it. Track all the corporate announcements and other news and latest happenings of the company to ascertain why it has happened. Once you ascertain the reason, you can decide whether you want to add to your portfolio, sell your stocks or just stay invested.
4.Check the credit rating of the company
It is highly essential to keep checking the credit rating of the companies. Credit Rating agencies like CARE, ICRA, CRISIL etc. publish ratings of companies on their websites with all the details related to the company. As a prudent investor, you must visit their website and check the latest credit rating of the company that you have invested in or plan to invest in. A positive credit rating implies that the management of the company is in good hands and the future prospects of the company are bright and vice-versa.
5.Keep a check on the shareholding pattern of the company
Companies are required to publish their shareholding pattern every quarter. As a wise investor, you must check the shareholding pattern of a company every quarter and compare it with the previous quarter and with the similar period of the previous year. This will help you to ascertain if the promoters are increasing the shareholding in the company or pulling out their stakes from the company.
It is fairly understood that if the promoters are increasing the stakes in the company, it implies a good potential for growth and vice-versa.
There are many other ways in which you can monitor your portfolio like assessing the promoter’s pledge of shares, tracking the stock price, keeping a check on the latest news related to the company, checking the corporate announcements of the company etc. A perfect blend of all these methods can help you in assessing and monitoring your portfolio reasonably.
mastertrust group’s dedicated research and advisory team will bring you the best investment ideas across asset classes and help you take informed decisions and give you all the requisite information about trading account, trading platform and other aspects related to stock market.
Connect with mastertrust today! Happy Investing and portfolio monitoring!