Measure The Investment Performance ; 3 Reasons

In the course of investment of the personal financial planning, the value of an asset may change from time to time due to changing of market conditions. In addition, as part of the investment process, you need to monitor and evaluate the performance of investment portfolios to see how far his chosen strategy works to achieve the investment goal.
Why we have to measure our investment performance?

Basically, there are three main reasons why we need to measure our investment performance:

1. The performance of investments is the aim of the investment process.

By measuring the performance of the investment, the investor can measure the achievement of its investment objectives.

2. For feedback on the achievement of investment goals.

Performance measurement allows investors to evaluate, where the evaluation results can be as a feedback on the achievement of investment goals. By this feedback, the investor can determine whether the chosen strategy is right, or does he still need to adjust the steps in order to achieve your investment objectives.

3. Avoiding the diversion of investment goals.

Evaluation of investment performance regularly can help to avoid mistakes that result in deviation of returns of the investment itself. If it's a mistake then you can immediately align by changing the investment strategies or its process.

As a result of our investment activity, a performance measuring is needed to evaluate its performance. Some investment product such as mutual funds, are managed by the investment manager/company. Even though, we need to keep monitor the performance of our chosen product, by our self.

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Happy investing :)

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