How to evaluate your portfolio performance in 4 steps


The goal of investing is to maximize your returns while minimizing the risk. So given some level of risk you are willing to accept (your risk profile), you want to maximize the return for that risk. Based on your desired expected risk and return, you need to choose an investing strategy accordingly.

The goal of portfolio performance evaluation is to figure out whether your current investment strategy is working. That is, whether your return is appropriate to the risk of your portfolio relative to some common benchmarks / whether you are not taking unnecessary risk given your returns or on the other hand, if your return is high enough given your portfolio risk.

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How to calculate your portfolio's return rate


"What's the return on your investments?"

A simple question that isn't always easy to answer (at least correctly).

Measuring and tracking the return of your investments is one thing you should always do to make good investment decisions. Still, many investors, portfolio trackers and even brokers (I won't point fingers) calculate it incorrectly.

In this post, I will go step by step through simple examples to show you why some commonly used metrics don't work and which ones to use instead.

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A complete guide to passive investing in the EU (2021)


In this guide, I will show you step-by-step how to start with investing if you are an EU citizen. I will show you how to start by passively investing in the global stock and bond market using ETFs. Passive investing is a great way to start because it offers great results (in the past 50 years global stock market grew around 11% annually) with minimum effort and time. It only takes few minutes each month to make the trades.

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