How do I track the performance of my stock investments over time?

Tracking the performance of your stock investments is key to understanding how well your portfolio is doing. Whether you're a seasoned investor or just starting out, knowing how to monitor your investments over time is crucial for making informed decisions.

1. Monitor Stock Price Changes

The simplest way to track your stock investments is by following price changes. You can do this through:

• Stock Market Websites: Use websites like Moneycontrol, NSE India, or BSE India to check live stock prices.
• Mobile Apps: Download apps like Angel One, Zerodha, Groww, or Upstox for real-time updates on your investments.
• Broker Platforms: Most stock brokers offer online portals to check real-time market updates on your portfolio.

2. Set Up Alerts for Price Movements

You can set up price alerts for your stocks so you don’t need to check prices constantly. Most apps and platforms allow you to receive notifications when a stock reaches a specific price. This is helpful for:

• Price Increases: Get notified when a stock you own reaches your target sell price.
• Price Drops: Set alerts for price decreases, so you can decide whether to buy more or sell.
• Target Prices: Set a desired price point for your stocks to automate your investment strategy.

3. Track Your Portfolio’s Overall Value

Instead of looking at individual stock prices, it’s important to track your entire portfolio’s performance. Here’s how:

• Portfolio Value: Most trading apps show the total value of your portfolio, which includes all your stocks combined.
• Gains and Losses: Track both realized gains (from sold stocks) and unrealized gains (from stocks you still hold).
• Percentage Change: Look at the percentage change in your portfolio to evaluate how well your investments are growing.

4. Use Financial Metrics to Track Performance

To assess your stock investments more accurately, calculate the following financial metrics:

• Return on Investment (ROI): ROI tells you the profit or loss you've made from an investment. The formula is:
  ROI = (Current Value - Investment Amount) / Investment Amount × 100
• Annualized Return (CAGR): CAGR shows the rate of return over a specified period, giving you an idea of how your investments have grown annually.

5. Compare Stock Performance with Benchmark Indices

A great way to assess the performance of your stocks is by comparing them to popular benchmark indices. This helps you see if your investments are outperforming or underperforming the broader market.

• SENSEX: The Bombay Stock Exchange’s (BSE) Sensex tracks the performance of 30 large, actively traded companies.
• NIFTY 50: The National Stock Exchange’s (NSE) Nifty 50 index tracks the top 50 stocks listed on the exchange.
• Sector Indices: If your investments are sector-specific, compare them against industry indices to see how they’re performing relative to the sector.

6. Conclusion

Tracking your stock investments is crucial for making informed decisions and optimizing your portfolio. By monitoring price movements, setting alerts, calculating financial metrics, and comparing your stocks to benchmark indices, you can stay on top of your investment game. Start using these tools and strategies today to ensure that your investments align with your financial goals.