Managing the performance of your investment portfolio is as important as selecting the right investments. Market conditions can change at a moment’s notice. Your continuous monitoring of your portfolio can ensure that you reach your investment objectives by staying on track. You can use a variety of tools to assist you in analyzing your portfolio and the market environment. The following is a list of several of the portfolio management options that you can use to evaluate your portfolio:

• Online purchasing of prepackaged portfolios: Called portfolio investment programs, these investments allow investors to own basket of securities that are tailored to meet their individual requirements.
• Web-based portfolio management programs: Investor super-sites, Internet portals, and large news organizations generally sponsor online portfolio management programs for free (or free with your subscription). These programs usually don’t require any software downloading, and they constantly update your portfolio. However, these programs don’t offer many features, such as customized graphs or charts, fundamental analysis, or tax-planning tools.
• PC-based portfolio management programs: These programs present portfolio tracking as a feature of a personal software program, such as Quicken or MS Money. PC-based portfolio management involves tracking with a software program downloaded from the Internet. These programs can be very inexpensive or even free. PC-based portfolio tracking programs usually have more choices and functions than Web-based portfolio management programs. However, you must download the proprietary software, and you might have to import (transfer data from one source to another) stock quotes.
• Portfolio management with your online broker: Portfolio management with your online broker is automatic. Your online broker knows what you traded, so the brokerage can automatically update your portfolio. This choice is a terrific way to track distributions from mutual funds and stock splits. Overall, the advantages of using your broker’s portfolio management system are that you don’t have to manually add transactions, and your portfolio always reflects the current value of your investments.

You don’t have to limit your portfolio tracking to just one approach. For example, you might use an online tool to determine your percentage rate of return for the current year and use your PC portfolio software to track your annualized returns. When traveling, you may want to use your online brokerage’s portfolio services to verify the completion of investment transactions, dividend reinvestments, or stock splits.

In the following sections, I offer examples that detail the features and functions of various types of portfolio management programs.