Why Checking Your Investment Portfolio Too Often Hurts Returns
By Business Desk
Edelweiss MD & CEO Radhika Gupta explains how constantly checking stocks and mutual funds increases anxiety and perceived investment volatility.
When you keep an eye on your stocks and mutual funds every second, you might actually be making your investments feel way more jumpy than they really are. Edelweiss MD and CEO Radhika Gupta points out that real-time market data access brings a shortened time horizon and extra anxiety.
Why your other assets feel safer
It helps to look at how we treat different types of wealth in our lives.
- Fixed deposits, private businesses, and personal property do not show fluctuating prices on a screen every single second.
- You naturally hold these long-term holdings with much more patience.
- Stocks and mutual funds have easily accessible and frequently updated values that tempt you to look constantly.
How to match your checks to your timeline
Gupta explains that your perceived volatility goes up simply because you look more often, even when the underlying asset stays exactly the same.
- Align your frequency of evaluation with your intended time horizon.
- Judge an equity fund over the long term rather than checking it on a daily basis.
- Understand that knowing when to leave a portfolio alone is just as critical as knowing what is in it for long-term success.
Giving your investments space to breathe helps you avoid impulsive decision-making so you can stay focused on your actual goals.