CCompound

Portfolio a alokace

Quarterly Portfolio Review: What to Check Every Three Months

6 min readCompound

Key takeaways

A quarterly portfolio review is not about searching for a better opportunity — it is about checking whether the portfolio still matches your plan and risk tolerance. Thirty minutes four times a year is enough.

Step 1: Check the allocation deviation

Open your portfolio overview and compare actual weights with targets. Example: target 70% equities, 20% bonds, 10% gold. If equities have risen to 78%, you are outside the band. Rule: rebalance only when the deviation exceeds 5 percentage points from the target weight.

Efficient rebalancing: instead of selling, redirect new deposits into the underweight component. You save transaction costs and avoid complicating the tax holding-period test.

Step 2: Check incoming dividends and coupons

Step 3: We do not make strategic changes

A quarterly review is not the time to change strategy based on recent market performance. If the equity market fell 10% in the quarter, that is not a signal to reduce the equity component — it is normal volatility. Tracking short-term results and mistaking them for a signal leads to buy-high / sell-low. For what risk actually means, see the article on risk.

Step 4: Check contributions against the goal

Did you contribute as much as planned in the last quarter? If not, why — was it an exceptional expense or a structural issue? Compare the actual portfolio value with the projection and adjust contribution levels if needed.

Review outcome

After 30 minutes you should know: allocation within band (yes/no), dividends handled (yes/no), contributions on plan (yes/no). If all three are yes — close the app and move on. The portfolio does not need you every day.

FAQ

How often should a portfolio be rebalanced?

The most common recommendation is once a year or when the deviation from the target exceeds 5–10 percentage points. A quarterly check reveals the deviation, but rebalancing every three months is usually too frequent and increases costs unnecessarily.

What is redirecting deposits in rebalancing?

Instead of selling the excess asset, you direct all new monthly deposits exclusively into the underweight component. The result is the same — the weights even out — but you pay no transaction fees and do not trigger the tax holding-period test.

Does it make sense to change strategy after a bad quarter?

Almost never. One bad quarter is statistical noise, not a signal about a flawed strategy. Strategy changes should come from changes in your life situation (shorter horizon, lower risk tolerance), not from short-term performance.

Open in the app with tools →