When we set up a portfolio, we have a plan. But things change with time, and our portfolio has to adapt too.
Your portfolio has a job to do. Its main objective is to ensure that you stay on track and reach your financial goals on time. But sometimes the portfolio can lose its way. Or, it is also possible that you may change your destination. Or, the portfolio is not able to go as fast or as safely as it needs to get you to your goals. That is when you need to intervene, sit back and rethink your strategy to get back on track. A portfolio needs periodic course corrections to ensure that its allocation reflects your current preference for risks, returns and the period set by you for your goals.