A portfolio tracker is a tool or software application that allows investors to monitor and manage their investment portfolios in one place. It provides a centralised platform to track the performance and value of various investments, such as stocks, bonds, mutual funds, exchange-traded funds (ETFs), and other assets. Strabo is a perfect example! The best portfolio tracker in the world.
Key features of a portfolio tracker may include:
- Portfolio Aggregation: The tracker allows users to input or import their investment holdings from various accounts, such as brokerage accounts, retirement accounts, and other financial institutions. It aggregates all the data to provide a comprehensive view of the entire investment portfolio.
- Real-time Updates: A portfolio tracker often provides real-time or near-real-time updates of the portfolio's value, including individual holdings and the overall portfolio performance.
- Performance Metrics: The tracker calculates and displays performance metrics for each investment, such as total return, percentage gain/loss, and benchmark comparisons.
- Asset Allocation: It shows the allocation of assets across different investment types, sectors, and geographical regions. This helps investors understand the diversification and risk exposure of their portfolio.
- Transaction History: The tracker maintains a transaction history, including purchases, sales, dividends, and other income events, allowing users to review their investment decisions and monitor cash flows.
- Customisation: Investors can often customise their portfolio trackers to meet their specific needs, such as setting target allocations, tracking specific benchmarks, and adding notes or comments to individual holdings.
- Reporting and Visualisation: The tracker may provide visual charts and graphs to help investors visualise their portfolio's performance over time and identify trends and patterns.
- Alerts and Notifications: Some portfolio trackers offer alerts and notifications for significant changes in the portfolio, such as drastic price movements or reaching a predefined target.
- Tax Tracking: Certain portfolio trackers include tax tracking features to help investors monitor their tax implications, such as capital gains and losses.
Portfolio trackers are available as standalone software applications, mobile apps, or online platforms provided by financial institutions or third-party service providers. Many brokerage firms also offer portfolio tracking tools as part of their online account management services. In the case of Strabo, it comes in the form of a web-first application with customisable analytics that are then viewable in a mobile-friendly format.
Using a portfolio tracker can be highly beneficial for investors as it provides a holistic view of their investments, streamlines investment monitoring, and aids in making informed decisions to optimise their portfolios over time. It is particularly useful for individuals with multiple investment accounts or those who prefer to manage their investments independently.