Figure Out How Your Investments Doing

A security is any investment product that can be exchanged for value and involves risk.

Sharper Insight. Smarter Investing. Manage Preferences EVALUATING A SECURITY'S PERFORMANCE In investing, "performance" refers to how well a given stock (or other financial instrument) has done over time. As you've probably heard many times, "Past performance doesn't necessarily predict future performance." Nonetheless, just about 100% of investors will look at a stock's performance before buying it. Performance is one of the best ways to see at a glance whether that stock is likely to go up or down. Performance is important before buying new securities; you also need to keep a close eye on the performance of what you already own – your existing portfolio. Performance is about more than whether a particular stock has been going up or down. Sometimes you will want to look at a stock's performance going back three years, sometimes just three months or even three days or less. Performance is also relative. "Up" or "down," as compared to what? You need a yardstick. This is where benchmark rates come in. This lesson will give you the basic tools to evaluate the performance of an individual stock, bond, mutual fund or ETF — and of your portfolio as a whole, read on. Evaluate the Performance of Your Investments Does your portfolio fit the investment objectives and risk tolerance that you've identified? Read More How to Use a Benchmark to Evaluate a Portfolio What is an investment benchmark and how is it used to evaluate the risk and return in a portfolio. Read More Mutual Funds: Evaluating Performance Knowing how a fund performed in isolation is not very helpful. Performance must be viewed as a relative issue, judged against the performance of an appropriate benchmark. Read More How To Evaluate Bond Performance Learn about how investors should evaluate bond performance. See how the maturity of a bond can impact its exposure to interest rate risk. Read More Fundamental Analysis Get ahead of the market by understanding the true value of a stock and capitalize on its price. Learn fundamental analysis strategies and tools used by the most successful investing professionals. Enroll Now. You are currently subscribed as: techandgio.cpex@blogger.com Unsubscribe  |  Manage Subscriptions Investopedia, LLC, A Division of IAC. 114 West 41st St, floor 8, New York NY 10036 Copyright © 2018, Investopedia, LLC. All Rights Reserved Follow Us: