While it's important to check in with your portfolio of ASX shares relatively regularly, doing so too often can be cumbersome. Particularly, if you're likely to rejig your holdings each time you do.
So, how often should you check in on your investments? Let's take a look.
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Why check your ASX share portfolio, to begin with?
If you're like me, you're buying ASX shares to hold them over the long term. That means building your portfolio should be a 'set and forget' endeavour, right?
Well, yes and no.
Diversification is also generally an important aspect of investing. As can be strategically balancing your investments across various shares, sectors, or asset classes.
Both measures can reduce some of the risks associated with investing in ASX shares.
But because the value of your various investments can (and likely will) move over time – hopefully in an upwards direction – it can be helpful to pop back into your portfolio to return it to your ideal balance.
Getting the balance right
However, doing so too often will likely see you forking out more for brokerage fees than necessary. Not to mention, you'd be spending precious time and energy to do so.
There's also something to be said for your peace of mind.
If you're the type to panic and sell during the ASX's downturns and giddily snap up more shares during its high times, you're far less likely to realise significant returns. You might even find yourself losing sleep over your investments if you're checking them too frequently.
Sadly, there has never been such a thing as an eternal bull market. And there likely won't be in the future.
Thus, investors would be wise to prepare to make the most of the downs, as much (or more) than they do its ups. After all, downturns can provide the perfect opportunity to buy quality ASX shares for less.
So, how often should one be checking their ASX shares?
Unhelpfully, I'll answer that question with another: How long is a piece of string?
But, as a guideline, I'd say around once or twice in an average year would generally be a reasonable amount to check on your ASX shares.
How often one should rebalance their portfolio, on the other hand, will depend on their investment horizon, risk tolerance, and how little or much the market moves over a given time frame.
If all this sounds like too much effort, never fear.
Investing in exchange-traded funds (ETFs) might be more up your alley. ETFs are essentially a ready-made portfolio, sold like a share on the ASX.
