How to Measure Whether Your Portfolio Is on the Right Path

By Admin

• 08 Sep, 2025

Goal Tracking: How to Measure Whether Your Portfolio Is on the Right Path

Investing is not just about buying mutual funds, stocks, or gold. The true purpose of investing is to achieve your financial goals — whether it’s buying a home, funding your child’s education, or building a retirement corpus.

But here’s the challenge: How do you know if your investments are moving in the right direction? That’s where goal tracking comes in.

📌 Why is Goal Tracking Important?

Most investors check only returns. But even if your portfolio is giving 12% returns, it doesn’t matter unless those returns help you reach your goal on time.

Goal tracking ensures:

• Your investments are aligned with your timeline.

• You know if you need to increase contributions.

• You avoid nasty surprises close to your goal.

🧭 Step 1: Define Clear Goals

Before measuring, you need clarity on what you’re measuring against. Write down:

• The goal (e.g., retirement, child’s education, house down payment).

• The timeframe (e.g., 10 years, 20 years).

• The target amount you’ll need.

👉 Example: “I need ₹50 lakh for my child’s higher education in 15 years.”

📊 Step 2: Calculate the Required Investment

Once you know your target, calculate how much you need to invest regularly to reach it. Use an SIP calculator.

For example:

• Goal: ₹50 lakh in 15 years

• Expected return: 12% per annum

• Required SIP: ~₹13,000/month

This becomes your benchmark for tracking progress.

📈 Step 3: Compare Portfolio Growth vs Goal

Check your investments at least once a year:

• Is your portfolio value on track with the required target?

• Are you meeting or lagging behind the required growth rate?

👉 If your portfolio is falling short, you may need to:

• Increase SIPs/top-up investments.

• Extend your timeline.

• Adjust your return expectations.

⚖️ Step 4: Rebalance Periodically

Sometimes one asset (like equity) grows faster than others, making your portfolio unbalanced. For example:

• You planned 70% equity + 30% debt.

• After a few years, equity becomes 85% due to market growth.

👉 Rebalancing (shifting funds back to your target allocation) keeps your portfolio aligned with your risk appetite and goal horizon.

🕰️ Step 5: Adjust Closer to Goal

As you approach your goal, shift from high-risk assets to safer options.

• 10+ years left → Equity-heavy portfolio.

• 5 years left → Reduce equity, increase debt.

• 2 years left → Mostly debt/liquid funds to protect capital.

This ensures you don’t lose money just before reaching your goal.

🔑 Tools for Goal Tracking

• SIP Calculators (to check required contributions).

• Portfolio Tracking Apps (ET Money, Groww, Kuvera, etc.).

• Financial Advisor for personalized guidance.

🛡️ Final Thoughts

Your portfolio is like a car on a long road trip. Checking only the speed (returns) isn’t enough — you need to check if you’re on the right route to your destination (goals).

By defining clear goals, tracking regularly, and adjusting when needed, you’ll ensure your investments actually deliver what matters most: financial freedom and peace of mind.

📞 Need Expert Help?
📧 Email: contacts@proshieldinvest.in
📞 Phone: 011-69290568
🌐 Website: www.proshieldinvest.in