What’s An ‘Investment Death-match’?

One of the most important things you can do as an investor is to keep track of your investments. While that seems like a given, in reality many investors are often guilty of not reviewing their investments regularly and not knowing the true performance of their investments.

A percentage return that is considered strong in one market environment might be considered weak in another. There is no single benchmark to refer to – in fact, all performance standards are moving targets. Hence, it is just as important to evaluate an investment in the context of your own strategy, as much as it is to measure how it holds up against the appropriate benchmark.

One way to get around this is to put your investments in a “death-match”. Here’s how it works: Start off by investing equal amounts of money in several investment funds at the same time. This makes it easy to monitor how your investments are performing relative to each other – simply by checking the fund balances at the end of a stated time period e.g. in three months.

How The Death-match Approach Benefits Your Investment Portfolio:

#1: You gain first-hand experience from learning how different investments perform over time relative to each other.

#2: Your portfolio risk is reduced due to diversification.

#3: Based on the performance results, you can direct more money into your better performing funds.