How often should a company's investment strategy be changed?

[tanjimajuha20]

uilding your wealth is always useful. And there are many products for this: stocks, bonds, real estate... But to properly control the risks, it is essential to make coherent choices. Similarly, to obtain performance, it is better to establish an effective action plan. And this translates into different strategies. To help you establish this one, here are 5 steps that will be very useful to you.


An investment 99 acres database approach should not be changed constantly. The most experienced investors know this well. Sticking to your initial strategy is a good thing. However, there are months that are more difficult for a fund's performance. These times generally correspond to periods that, if they did not exist, would cause the fund to underperform its benchmark index. To do this, small, regular daily gains are replaced by larger gains over a more targeted period. This could be, for example, 6 months.

And then you wonder whether changing your investment strategy is necessary or not. Before even thinking about this change, you will need to think about your two sources of capital:

Human capital;

Financial capital.

The first is your ability to make money. The second is the actual amount that is available to invest. So, young investors have significant human capital. Conversely, seniors have significant financial capital.

So when you invest, you can have one of these capitals and you can take more risks for that. But when the balance between human capital and financial capital changes, it is time to think about changing your strategy.

This can come from:

From a loss of employment;

From an evolution of the family circle;

From a gift or an inheritance;

From a retirement.

Professionals advise not to change your investment strategy too often. It is better to be patient and disciplined before changing your approach.

Rebalancing your portfolio is, however, essential to maximizing returns. But to do this, you must take into account the cost associated with this rebalancing. Transaction fees can indeed be significant.

Once this is considered, you can then decide how often to rebalance your portfolio. Reviewing your strategy regularly is important. This will allow you to make the necessary changes and remain responsive. You will need to conduct a precise analysis. To do this, you will need to have a clear understanding of your situation, taking into account your strengths and weaknesses. You will also need to understand the changes that have occurred and finally, you will need to set new goals.