How can I evaluate my investment performance?

How can I evaluate my investment performance?

You can evaluate your investment performance by comparing your returns to a benchmark, analyzing risk-adjusted returns, and reviewing your investment strategy.

What benchmarks should I use for comparison?

Common benchmarks include the S&P 500 for stocks, bond indices for fixed income, and a blended index for mixed portfolios.

How do I calculate my returns?

To calculate your returns, subtract the initial investment from the final value, then divide by the initial investment and multiply by 100 to get a percentage.

What is risk-adjusted return?

Risk-adjusted return measures how much return you are getting for the level of risk taken, often using metrics like Sharpe Ratio.

Can you suggest tools for tracking my investments?

Sure! Popular tools include Personal Capital, Mint, and various brokerage platforms that offer performance tracking features.