As a real estate investor, keeping portfolio tracking can sometimes be a formidable task. The optimal approach very much involves having access to the necessary tools and information; this right away helps you manage your investments. However, some people are not aware that they have to track their portfolios to have an idea of their performance rate.
The good thing is that it doesn’t really matter if you’re new to investing or a seasoned pro. When you have the knowledge, practise, or invest in a platform that offers performance reports, asset allocation tools, and financial calculators, the sky becomes your starting point as you begin tracking your portfolio. Yeah, you read that right.
Before we delve deeper into understanding or practising what portfolio tracking is, let us land first on what portfolio tracking is.
What is Portfolio Tracking?
Portfolio tracking is a vital aspect of investing that allows you to keep tabs on the performance of your investments and make informed decisions about your future investments.
Other must-know terms associated with portfolio tracking include:
- Performance reports can give you valuable insights into the performance of your investments. You’ll be able to see how your portfolio is performing, including your returns.
- Financial calculator: this is a tool provided by your investment platform that can help you evaluate the potential returns of your investments, calculate your ROI, and determine the profitability of different investment opportunities.
Problems Associated With Portfolio Tracking
As beneficial as portfolio tracking may be, it is not without its inherent drawbacks. Many investors who utilise portfolio tracking tools sometimes encounter certain challenges, which we will highlight to ensure you avoid experiencing the same problems.
- The inability to precisely track all investments is one of the most prevalent issues with portfolio tracking. This is particularly valid for individuals who have a diverse portfolio spread over many investment types including equities, bonds, and mutual funds. Manually tracking your portfolio often leads to this problem, as it can result in inaccurate performance statistics and ultimately subpar investment results.
- Another problem experienced with portfolio tracking is that it can be time-consuming. It can take a lot of time to manually enter data into a portfolio tracking tool, especially if you have a large portfolio. With digitalisation or an investment company, it is easier to track your data in real time.
- Subsequently, portfolio tracking can also be challenging for investors who are just starting. It can be overwhelming to learn how to use a portfolio tracking tool and understand how to read the data it provides. The learning curve can be steep, and some investors may find it challenging to understand the various investment metrics and how to interpret them.
Despite these challenges, there are solutions available to help investors overcome them. One of them is to use an automated portfolio tracking tool that can automatically track all your investments.
These tools save you time and provide you with accurate portfolio performance results.
Another great solution is working with a financial advisor or an investment company that can help you manage your investments. A financial advisor can help you develop an investment strategy that aligns with your financial goals and risk tolerance.
Once you start implementing the solutions discussed, like working with a good and credible investment company, investors like Sabinus will have to learn from you ???? and by using our platform, you will align with your financial goals and achieve them in no time.
At Havvest, we know how important it is to have the right tools to manage your real estate investment portfolio. That’s why we offer a platform that provides all of these tools. Our platform is designed to assist you in tracking your investments, analyzing your portfolio’s performance, and making informed decisions about your future investments.
We also offer expert consultations for those seeking investment advice.
Contact us today to learn more about how we can help you build and track your real estate investment.
