How You Can Manage Your Investment Portfolio Digitally

Many investors struggled to manage their investment portfolios during the pandemic, especially amid the market's dramatic downturn in March 2020. As a result, investors realised the importance of exercising better control over their investment portfolios and adjust to changing market conditions.

It is prudent to embrace the technology and innovation in the financial services industry and become enabled to maintain your investments digitally.

[Read: How to Start Investing Through Online Platform: Guide for Beginners]

Recently, I received a call from Mahira, she wanted to know few details about SIP mode of investment. After our discussion she said, "You know I just realized how every part of my life depends on technology, including this SIP investments. Like I literally manage every small thing food, shopping, travel, meetings, set reminders, auto-payments etc. digitally; it's like having a personal robo-assistant with me."

I replied, "Yes true, also the work from home concept is a major shift in our lives, all thanks to technology and due to digitization, you could easily make your SIP investment on your fingertips at the comfort of your home."

Mahira said, "I know right, actually I wanted to connect with you since few days. Looking at the current scenario, I am planning to manage my own investment portfolio, but I need to have easy access to it. Could you suggest a way to do that?"

To which I responded, "Sure Mahira, let me help you with that, did you know you could manage your own investment portfolio digitally?"

"No, I always depend on my investment adviser and he does maintain my investment portfolio and I review it once a year while filing for taxes" , she said.

Well, in today's financial marketplace, it's important to routinely know what's going on with all your investments and not just review it once a year when you file taxes. While the market is on a path of economic recovery, a well-maintained investment portfolio is vital for any investor's success.

The uncertainty of the previous year and its effect on the investment portfolios helped many investors value the importance of portfolio diversification towards various asset classes. I came across few investors recently who were seeking to try Do-It-Yourself investing and self-manage their portfolios.

Investors now have the ease of access to information and market details; you can easily obtain market related real-time news online. An investment portfolio is a collection of various assets and keeping a track of all these investments is a challenging task.

With innovative technologies such as mobile banking and robo-advisors, it has become convenient for investors to stay informed about their investments. In simple words, you can construct your investment portfolio digitally, one that is aligned to your goals by following a systematic approach.

You see, to construct and manage your investment portfolio digitally, you must be aware of these important components in order to achieve better results.

1. Online Investing

To start with, you need to ensure all your investments are made online so that it is easier to track. You can simply register yourself on an online investing platform and make investments in various avenues.

It is essential to have an intelligent investment framework with worthy investments with the investment strategy based on your risk tolerance, investment horizon, and S.M.A.R.T investment goals.

Investing via online portals provides an edge with its transparency and ease of access to the progress of your investments at any given point. You could also consider using financial calculators such as SIP calculator to compute your mutual fund SIP investments and allocate an adequate amount. You can link your bank account for an auto-debit towards your investments so that you do not miss your SIPs.

Online investing saves time and cost by reducing and eliminating complicated paperwork and you have a better control of your investments to make informed decisions.

2. Portfolio management apps

Now once you have all your investments online, the major part after that is portfolio management. Fortunately, several portfolio management apps offer detailed information on all your investments like a one-stop place.

You could easily access a portfolio-tracking app on any of your devices. It's very simple. You need to enter the details of your investments to track them. It has a user-friendly interface and provides information and tools to analyse and explain a range of investments.

Such portfolio management apps offer the concept of Robo-advisor as the ultra-tech modern-day investment advisor in the market. It is a digital platform that offers investors automated, algorithm-driven investment planning services and eliminates human bias and interference.

Robo-advisors aim to automate an investment strategy that optimizes the ideal asset class weights in your portfolio at your risk preference. You can simply manage your investment portfolio with the help of a robo-advisor; it will assist you in selecting worthy investment options and implementing a systematic approach.

3. Ensure diversification

While you are maintaining your investment portfolio digitally with the help of a robo-advisor, you must also ensure appropriate diversification and asset allocation. Considering the uncertainties in the environment, portfolio diversification reduces risk and protects your investments from the damaging effects induced by unexpected market changes.

The portfolio management apps will offer you investment strategies based on your risk preference-aggressive, moderate, or conservative-and suggest optimal asset allocation. Ensure that you hold a well-diversified portfolio to weather the storm.

4. Financial knowledge

To manage your investment portfolio digitally, you need to understand the above components effectively. Those will only make sense if you are well equipped with financial knowledge.

You might save your hard-earned money by DIY investing and managing your portfolio digitally rather than paying for professional advisory charges. However, there is a possibility those savings will likely be offset by market losses if you lack of financial knowledge.

Thus, empower yourself with financial knowledge and sharpen your financial awareness. While maintaining your investment portfolio digitally, there are several risk associated such as security of your financial data, online transactions fraud, etc., and financial knowledge helps mitigate such risks.

Although robo-advisor will take care of your investments and offer you services with risk-adjusted returns. Somehow, it will be necessary to enhance your financial knowledge so you can grasp the suggestion given by the robo-advisor and in turn make informed financial decisions. In addition, you could also become your family's financial guardian and help them in managing their investments.

Therefore, it is convenient for you to manage your investment portfolio digitally with the help of advancement in technology.

PS: We at PersonalFN have an exclusive mutual fund investment platform, uniquely built in such way that it can guide you select the best funds and invest in low-cost direct plans offered by mutual funds.

This platform also offers access to research on top recommended funds and provides you with an opportunity to create your own robust mutual fund portfolio of direct plans. Read here for more details...

So, what are you waiting for? If you wish to manage your mutual fund investments digitally, you may enrol to PersonalFN's exclusive direct plan platform - PersonalFN Direct!

Happy Investing!

Warm Regards,
Mitali Dhoke
Jr. Research Analyst

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