For many investors, checking their portfolio has become a daily ritual. But constantly tracking market movements can trigger emotional decisions that hurt long-term wealth creation.
Shivam Pathak, Certified financial planner, posted on Linkedin, the first thing many investors do after waking up is check the market or their portfolio.
If the portfolio is green, the day feels good. If it is red, the mood changes completely.
But this habit can quietly affect your financial decisions.
The cost of performance chasing
Many investors entered the markets after the strong post-COVID rally, expecting similar returns to continue.
“Someone who started investing just two years ago may have entered the market with very high return expectations. When markets later go through a phase of modest gains or little growth, it's natural for such investors to begin questioning whether they made the right investment decisions,” Pathak told Mint.
“When they see their portfolio not performing as expected, they often move from one asset class to another in search of better returns.”
“For example, in recent months, many investors shifted money from equities to gold, then to silver, and later to other funds or asset classes based on whichever investment had delivered the best recent returns.”
This performance-chasing behavior often leads to poor timing, causing investors to miss future gains and, in many cases, suffer significant losses, he adds
How often should investors check their portfolio?
Pathak say, “when we check our portfolio too frequently, we may start reacting emotionally instead of following a proper plan. And in investing, emotional decisions often hurt long-term returns.”
“Markets will rise. Markets will fall. That is normal.”
Instead of tracking portfolio performance every day, investors should review their investments periodically—such as once a quarter or during their annual financial review. Regular portfolio reviews are important, but they should be focused on whether the investment strategy remains aligned with financial goals rather than on short-term gains or losses.
For long-term investors, the biggest advantage often comes not from finding the next winning asset class but from remaining invested, staying diversified, and allowing compounding to work uninterrupted over time.
“What matters is having a clear investment plan, staying disciplined, and not allowing daily market movements to control your peace of mind,” Pathak concludes
