4 Steps to a Low Maintenance Investment Portfolio

These four steps can help you craft a (mostly) hands-off portfolio, writes Christine Benz.

Christine Benz 26 April, 2021 | 12:34PM
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Morningstar once conducted research that looked at what would happen if the holdings in fund portfolios were frozen in time, with no further changes over the following year. The surprising conclusion? They tended to beat the returns of the actual portfolios, which reflected the fund managers’ trading activity. In other words, the funds would have performed better had the managers stood pat rather than trading.

Investors should take that finding to heart when they manage their own portfolios, too. While some investors swear by frequent monitoring and rebalancing tweaks, I’ll happily take a policy of benign neglect any old day.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
General Electric Co103.85 USD-3.34Rating

About Author

Christine Benz

Christine Benz  is director of personal finance at Morningstar and author of 30-Minute Money Solutions: A Step-by-Step Guide to Managing Your Finances.