Portfolio Tracking

The act of tracking the movement and performance of assets of your financial holdings is termed portfolio tracking.


What Is Portfolio Tracking?

Portfolio tracking is one of the critical components guiding every successful investor. For investors who wish to accurately (and instantaneously) track how a group of investments is performing over time, portfolio tracking is the corresponding method.

Financial markets represent an ever-changing ecosystem, especially when it comes to new-age investment options like cryptocurrencies, NFTs (non-fungible tokens), and DeFi (decentralized finance). In a world where economic uncertainty is a constant, the aim of every individual investor is to meet their financial goals – goals which may be short-term, medium-term or long-term in nature.

Investing across a diverse range of assets doesn’t necessarily mean that you’ll succeed. Tracking your investment’s performance and accordingly making the right investment decisions at the right time is crucial to success. From creating Excel spreadsheets to depending on portfolio tracking software and apps, tracking a portfolio in any form or method offers multiple benefits while at the same time delivering useful insights about overall performance.

Risk and return are the two most important aspects of every financial investment and trade. You might have also heard that the higher the risk, the greater the return. But, in reality, the majority of the investors are always on the lookout for opportunities to minimize risks as much as possible. 

But how do you minimize the risk?

It is simple: keeping track of assets that you own, how they are performing, and reallocating under-performing assets in real-time.

And this is where portfolio tracking comes into the picture. With portfolio tracking, investors can keep closer tabs on investments like stocks, mutual funds, and cryptocurrencies – all of it from a unified dashboard. Be it via an Excel spreadsheet or a high-level application, portfolio tracking provides a more detailed view of how funds have been allocated, the status of current investments, and a big picture view in terms of profitability and losses.

While it may not seem so important, portfolio tracking plays a vital role in helping investors plan and execute portfolio strategies. Besides the big picture view, this activity offers a real-time view that highlights choices available to ensure that investors can appropriately maximize returns while at the same time minimizing possible risk factors that might negatively impact an investment portfolio.

Benefits of Portfolio Tracking

Here are some key reasons why everyone should start tracking their investment portfolios:

  • Helps to manage asset holdings and portfolio rebalancing

  • Provides valuable insights from past and present performance, facilitating better strategizing for future investments

  • Build customizable investment plans to meet varying financial goals

  • Powers faster tax assessment and management

  • Insights can be leveraged to reallocate funds for maximum returns

  • Unlocks more diversification opportunities

  • Delivers preparation for volatile market conditions

Author Bio

Narek Gevorgyan, the CEO of crypto portfolio management app CoinStats, is a highly-proficient professional with decades of experience across programming languages, database management, mobile game development, and blockchain technology.

With a bachelor’s degree in informatics and applied mathematics from Yerevan State University, Narek has held several positions throughout his career. He began as a Java developer as part of the global information technology firm Synergy International Systems. Following this, Narek joined Bitfortis as the Chief Technology Officer (CTO) and co-founded several high-performing startups like Bartly, OffParse, and Inomma.

Connect with Narek on LinkedIn.