Reviewing your investments
Reviewing your investments
After you invest, review your investments regularly to make sure they still suit your goals. A review can help you understand how your investments are performing, what they cost, whether the level of risk is still right for you and whether better options may be available.
Review your investments at least once a year and sooner if your circumstances change. If you want support or you are considering making significant changes, it’s a good idea to seek independent financial advice.
What should you check when reviewing your investments?
Use the review to check:
- Your goals: Is the investment still helping you meet your goals?
- Performance: Is it performing as you expected?
- Risk: Are you still comfortable with the possibility of losing money or with short-term changes in value?
- Timeframe: Has the date when you expect to need the money changed?
- Access: How easily can you access your money, and are any restrictions, notice periods or penalties involved?
- Fees and charges: What have you paid and how have those costs affected your return?
- Tax: Could selling, switching or receiving income from the investment have tax consequences?
- Diversification: Are you relying too much on one product or type of investment?
How do you know if your investment is performing well?
Market losses are a normal part of any investment journey. A rise or fall in value over a short period does not necessarily mean an investment is performing well or badly. Consider whether the overall investment is helping you meet your goals and whether its performance matches the level of risk you accepted.
Use the statements and performance information supplied by your provider and compare against similar types of investment over the same time period. Ask a financial advisor for help in understanding performance.
When choosing an investment product, remember the golden rule: An investment product may have delivered great results in the past, but that doesn't guarantee the same returns in the future.
What fees and charges should you review?
Check your statements, product information and your statement of suitability to understand what charges you are paying, including:
- Ongoing management or service charges
- Platform or account fees
- Advice fees
- Transaction, trading or switching charges
- Exit, withdrawal or early-termination charges
Small recurring charges can significantly reduce your return over time. Before switching investments, compare the total cost of your existing investment with any alternative, including any exit or transfer charges.
What should you do if an investment falls in value?
A fall in value does not necessarily mean you should withdraw your money or sell your investment. Short-term fluctuations are often a normal part of investing. Avoid making rushed decisions based on temporary market movements, sometimes known as "panic selling".
If you are concerned about a drop in value, seek financial advice before making a decision. This can help you assess whether the investment remains suitable for your goals and attitude to risk.
Selling after a fall may turn a temporary loss into a permanent one. However, keeping an investment that no longer suits your needs could also expose you to additional risk or costs. Avoid making significant decisions based only on short-term market movements.
Should you review your investments yourself or use a financial adviser?
You can carry out a basic review yourself using your original investment documents, statements and information from your provider. Consider getting independent financial advice if your investments are complex, you are unsure whether an investment still suits your needs, or you are considering significant changes. Find out more about getting financial advice.
What should you do if you want to make changes?
Before changing, switching or selling an investment:
- Check whether fees, penalties or tax may apply • Make sure any change still supports your goals
- Compare the risks, costs and any restrictions on accessing your money
- Read the provider's current product information
- Avoid making a rushed decision in response to short-term market movements
If you decide to make significant changes, consider seeking independent financial advice.
