Recommended review cadence and focus areas
Regular reviews balance vigilance with avoiding overreaction to normal fluctuations. The right frequency depends on the product’s liquidity, complexity, and risk profile.
Suggested review schedule:
- Daily checks: High-level operational alerts (uptime, major drawdowns, connectivity issues).
- Weekly reviews: Performance snapshots, position sizing, and platform health for active strategies.
- Monthly reviews: Deeper performance analysis, fee reconciliation, and risk exposures.
- Quarterly reviews: Strategic reassessment, rebalancing, and due-diligence refresh on providers.
Items to evaluate during reviews:
- Net returns and drawdowns vs expectations.
- Platform stability, security notices, or regulatory changes.
- Fees and their effect on net income.
- Correlation with other holdings and overall portfolio allocation.
Action triggers:
- Unusual drawdowns, increased latency, or unexplained losses should prompt immediate investigation.
- Major platform announcements or regulatory changes require timely reassessment.
A disciplined review routine—daily operational monitoring combined with weekly-to-quarterly performance and risk checks—keeps passive income investments aligned with goals while avoiding unnecessary micromanagement.