Are They Still Working for You?
Making the decision to invest is an important first step.
But investing isn’t a “set it and forget it” exercise.
Markets change.
Your personal circumstances change.
Your financial goals evolve.
An investment strategy that suited you five years ago may no longer be the best fit today.
That’s why reviewing your investments regularly is just as important as making the initial investment.
Why Investment Reviews Matter
Imagine two investors who both started investing at the same time.
Over the years, one regularly reviews their portfolio, ensuring it remains aligned with their goals, attitude to risk and changing circumstances.
The other leaves their investments untouched, assuming everything is still working as intended.
Years later, one has a portfolio that continues to reflect their financial objectives.
The other may be taking more risk than they realised or holding investments that no longer suit their needs.
Regular reviews aren’t about making constant changes.
They’re about making informed decisions.
What Should You Review?
A regular investment review can help you:
- Understand how your investments are performing.
- Check that your portfolio still matches your attitude to risk.
- Ensure your investments remain aligned with your financial goals.
- Identify opportunities to rebalance your portfolio where appropriate.
The aim isn’t to react to every market movement.
It’s to ensure your investment strategy continues to support your long-term objectives.
Look Beyond Short-Term Performance
It’s natural to focus on whether your investments have gone up or down over the past few months.
However, investing is a long-term journey.
Short-term market movements are normal and shouldn’t usually drive major financial decisions.
Instead, ask yourself:
- Is my portfolio performing in line with my long-term expectations?
- How has it performed over the last three, five or ten years?
- Is it delivering returns that are appropriate for the level of risk I’m taking?
Looking at performance over a meaningful timeframe provides a much clearer picture than reacting to day-to-day market fluctuations.
Is Your Investment Risk Still Right?
Your attitude to risk isn’t fixed forever.
Major life events such as buying a home, approaching retirement, receiving an inheritance or changing jobs may mean your investment strategy should be reviewed.
A regular review helps ensure you’re not taking more—or less—risk than is appropriate for your current circumstances.
Is Your Portfolio Properly Diversified?
Diversification remains one of the most effective ways to manage investment risk.
Rather than relying on one company, one country or one type of investment, a diversified portfolio spreads your money across different:
- Asset classes.
- Geographic regions.
- Industry sectors.
- Investment styles.
This can help reduce the impact of poor performance in any single area while creating opportunities for long-term growth.
A Simple Example
Imagine you invested €100,000 five years ago.
Thanks to strong market performance, your portfolio has grown to €135,000.
When you first invested, your portfolio was split:
| Original Portfolio | Allocation |
|---|---|
| Shares | 60% |
| Lower-risk assets | 40% |
As shares have performed particularly well, your portfolio may now look more like this:
| Current Portfolio | Allocation |
|---|---|
| Shares | 75% |
| Lower-risk assets | 25% |
Without realising it, you’re now taking significantly more investment risk than you originally intended.
A review may identify the need to rebalance your portfolio so it once again reflects your investment strategy and attitude to risk.
Have Your Goals Changed?
Life rarely stands still.
Perhaps you’re now planning to:
- Retire earlier.
- Help your children through college.
- Buy a holiday home.
- Generate additional income.
As your goals evolve, your investments should be reviewed to ensure they’re still working towards what matters most to you.
How Often Should You Review Your Investments?
For most investors, an annual review is sufficient.
Regular reviews help keep your investment strategy on track without encouraging unnecessary reactions to short-term market volatility.
It’s also sensible to review your investments after any significant life event or major change in your financial circumstances.
How Oaktree Financial Services Can Help
Every investor has different goals.
That’s why every investment strategy should be tailored to the individual.
At Oaktree Financial Services, we believe investment reviews should focus on far more than simply investment returns.
We help clients understand:
- How their investments are performing.
- Whether they’re taking the right level of risk.
- If their portfolio remains appropriately diversified.
- Whether their investments continue to support their financial goals.
- If changes are needed to keep their long-term financial plan on track.
Our aim is to provide clear, objective advice that helps you invest with confidence.
Adrian Godwin is a Senior Financial Consultant and the co-founder and managing director of Oaktree Financial Services. With a background in accounting and tax advising, Adrian specialises in estate planning and wealth management.Adrian offers clients reassurance through best practice solutions. His unique skill set and qualifications enable clients to develop comprehensive life plans that align with their goals.
