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  • Schofield

How Often Should I Review My Portfolio

For an advised client, it is recommended that you should be reviewing your account every year. There are many factors that go into determining if your investment portfolio is suitable including the costs, the performance against market trends, the risk taken and your risk profile. Schofield can help you review your account periodically to make sure you're on track with the latest news. Remember that markets will constantly rise and fall and there is no way to predict how long those rises and falls will last for. We always remind our clients that just because you're getting comfortable with a particular rate of return doesn't mean it won't change over time. A yearly review of your account should strike the appropriate balance between ensuring that you have control of your finances and avoiding it being a burden or getting in the way of daily life.

Rebalancing Your Portfolio

Rebalancing your portfolio is the only way to stay on track with your target risk allocation - the percentage of your portfolio that's invested in various risk levels. The target allocation of your portfolio is what you want to maintain so that you're confident in how much risk you're taking and on track to fulfil the investment returns you need to meet your goals.

Generally speaking, the more stocks you own, the greater the risk you're taking on, and the more volatile your portfolio will be. However, over time, stocks generally outperform bonds, which is why so many investors rely on a blend of stocks and bonds to achieve their objectives.

When the stock market is performing well, your portfolio's £ value percentage represented by stocks will rise as the value of your stock holdings rises. If you start with an 80% stock allocation, for example, it may climb to 85%, making your portfolio riskier than you intended. Rebalancing is the solution.

Rules That Guide Us At Schofield

Active vs Passive

Our portfolios contain a mixture of active and passive funds, as we are neutral in the active vs passive debate.

Some active strategies outperform their benchmarks, and some don't. Just as some passive strategies track markets effectively, and some don't. What's important is that we assess both with an equal degree of rigour.

Timing vs Time-In

We believe "timing" the market is impossible and is no different to gambling. The cost of getting this wrong can be significant, as missing just a handful of the best days can result in halving your overall return.

No one can predict the future and some of the biggest market gains occur during volatile periods. Therefore, we encourage holding long term investments through all market conditions to take this risk off the table.

Diversification is Key

We're sure you have heard about how you shouldn't hold all your eggs in one basket, but our portfolios are invested:

- Across multiple asset classes

- All over the world

- In different industries

- In various management styles

- With numerous investment providers


As discussed, rebalancing is extremely important. We therefore rebalance regularly to counter this portfolio "drift", maintain effective diversification and make sure your investments are always right for you.

If you’re looking for independent financial advice for your investment needs, support with rebalancing your investments or quality controlled investment, speak to one of our chartered financial planners today.

The value of an investment with Schofield Money Ltd is directly tied to funds selected, as a result, the value can fall as well as rise, you may get back less than originally invested.

This article is for information purposes only. It does not constitute any financial or investment advice. Please contact us if you wish to proceed with any course of action suggested in this article.

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