A diverse portfolio covering a range of assets and securities is a great way to maximise returns while minimising risk. Utilising stocks and shares, bonds, trusts and funds rather than relying solely on bank accounts can help your finances grow faster than inflation, and a wide variety of investments protects you against the pitfalls that come from having all your eggs in one basket.

You must review your investments regularly to ensure and improve their financial benefit. The degree of risk involved in putting money in a moving market, alongside changing personal priorities, means that what worked for you yesterday may not be the best option today.

  1. Track progress

Reviewing your investments allows you to track the progress of your finances and identify areas for improvement.

In particular, the value of stocks and shares can vary due to market fluctuations , sometimes dramatically, quickly and unexpectedly. This can lead to sudden gains or losses and a change in the best investment options, so regular checking is essential to continued progression.

Other assets that require special attention are those bound up in life cycles such as bonds. These periodically mature and will need to be reinvested.

  1. New goals

Life events can often lead to new financial goals that will naturally influence investment strategies.

For example, the birth of a child might inspire parents to focus on long-term savings rather than short-term gains and influence them to start building a trust fund. Conversely, an upcoming wedding or the need to buy a big-ticket product like a car could make spending the priority over saving, or change the angle of investments towards rapid returns.

Making sure that your portfolio matches your priorities with regular reviews and occasional adjustments is essential to fast-tracking the achievement of your goals, current and future.

  1. Attitude to risk

Another reason to review your investments regularly is that your attitude to risk will change. At the beginning of your investing journey, it’s best to play it safe, but as you become more financially secure you may want to chase big returns by going for more high-risk options.

To ensure you stay in the black, you should seek tailored recommendations from a personal finance advisor who can discuss different options in detail and advise on how much you should be storing in low- or no-risk investments to ensure your long-term financial security.

So, there you have it: reviewing your investments regularly is vital to risk management and helps to ensure your funds are performing in a way that meets your needs, whether you want to save for a house, splash out on a big trip or start seriously preparing your pension.