First principles of investing

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18. How to keep your portfolio on track

When markets are rising it can be said that many professional investors and private amateurs may achieve what look like reasonable results. The real skill is in achieving above-average returns.

Don't feel daunted by the mass of detail in the Financial Times Company & Markets section. This may be the best starting point for any investor who wants to check the progress of a private portfolio of shares.

To measure the progress of your portfolio and the individual shares and funds it contains, you need an appropriate benchmark or yardstick. You may wish to compare your performance with:

• Inflation
• The return on 'safe' investments like gilts
• The rise in an index
• The return achieved by a peer group (eg other shares or funds in a sector)

For mutual funds it also may be important to check performance on a discrete basis. Discrete results show year on year rather than cumulative performance. A good cumulative result over five years might hide an outstanding short-term performance followed by several years of mediocrity.

1. Five steps to establish your investment goals 2. Your attitude to risk and reward 3. The major asset classes 4. Which type of manager? 5. Your investment assessment kit 6. Is past performance a guide to the future? 7. Easy access deposits for emergencies 8. Fixed income products 9. A rising income 10. The choice of collective equity funds 11. Pensions and ISAs 12. Tax efficient but may be very risky 13. Selecting your shares 14. Your stockbroker 15. Buying your shares 16. Ethical Investment 17. When to sell 18. How to keep your portfolio on track 19. Do you need an adviser? 20. Conclusion

• First Steps in Shares
• How to Read the Financial Pages