DIY Investor Magazine
/
March 2016
17
5. REVIEW & BALANCE
Reviewing your investment portfolio on a regular basis
is fundamentally important. To ensure you are taking
an appropriate amount of risk, it may be wise to sell
some assets that have performed well and now
dominate the portfolio, and reinvest the cash into
investments that haven’t performed as well and have
shrunk in proportion.
The risk if you do not take these steps is ending
up with a large proportion of something like emerging
market funds, that could lose their value as
dramatically as they gained it.
On the other hand however, if this process is done too
quickly, the charges from making these changes could
outweigh the benefits of the rebalancing process.
In case of any doubt and before taking an investment
decision, please consult with your investment advisor.
The value of an investment and the income from it can
fall as well as rise and you may not get back the
amount originally invested.
Nothing in this document is intended to or should be
construed as advice and you should satisfy yourself as
to its suitability and the risks involved, you may wish to
consult a financial adviser.
This document is not a recommendation to sell or
purchase any investment. It does not form part of any
contract for the sale or purchase of any investment.
Issued in the UK by Henderson Investment Funds
Limited (reg. no. 2678531), incorporated and registered
in England and Wales with registered office at 201
Bishopsgate, London EC2M 3AE, is authorised and
regulated by the Financial Conduct Authority to provide
investment products and services.
FOR SMALLER-SCALE INVESTORS, HOLDING
INDIVIDUAL SHARES IN ONE OR TWO COMPANIES IS A
FAIRLY HIGH-RISK APPROACH TO INVESTING; IF ONE
OF THOSE COMPANIES FOUND ITSELF IN HOT WATER,
THE WHOLE INVESTMENT PORTFOLIO WOULD BE
AFFECTED.
The Investment Trust Show on Share Radio
Active vs Passive Fund Management
James de Sausmarez – Director and Head of Investment
Trusts, Henderson Global Investors
Doug Brodie - Owner, Master Investor
Ed Bowsher – Senior Analyst, Share Radio
