Share Portfolio Update – March 2021

Share Portfolio Update

This is the third share portfolio update on the path to achieving a $1 million dollar portfolio. I have kept a steady investment account balance. Building on the portfolio from February 2021, I have invested a smaller amount of $1,500 from wages into the portfolio. With Uni fees owing there weren’t a lot of savings to grow the portfolio this month. I have also considered investing in ETFs through a new broker Pearler. This month in order to discover more I have written a blog about Pealer a new investment platform. I would like to invest in an asset class such as ETFs to curb the downward trend of the growth shares. The goal is still to reach an overall portfolio value of $20,000 by June 2021.

Return on Investment

The return on investment has been in the red this month at -6.91%. The main drag on the portfolio returns is the poor performance of the tech sector. I have decided not to let some online investing sources influence my decision-making. The share portfolio needs to be rebalanced to rely less on the tech industry. This will reduce my short-term risk exposure from growth stocks. To rebalance, I need to invest in more diversified assets. These could include ETFs that track the index and provide a more stable return.

Portfolio Update – Shares

The shares that I invested in this month were limited to Flight Center (FLT) with the returns up 8% on my initial investment. With the travel sector recovering I see it as an opportunity for growth over the coming years. Furthermore, the investment has also allowed me to increase my exposure away from the tech sector. I received my first dividend from BHP paying out at $2.02 a share. Whilst it was only a small amount this passive income will grow as my portfolio builds over time. Going forward I may review my strategy to focus more on balanced portfolio returns.

P2P Lending

I decided to withdraw the funds invested in the P2P Lending as I was not getting the same return that i could get if invested in the share market. So far it’s been a good decision to reallocate the funds however i may consider returning to the Peer to Peer lending market once the interest rates rises for lenders.

Looking Ahead

Next month, I will revisit the portfolio value goal of reaching $18,000. Firstly, I will continue to use dollar-cost averaging. Secondly, I may consider investing with Pearler to test the auto-invest option. Thirdly, It is important to continue to review the performance and investing strategy regularly. Finally, investing in growth stocks has uncovered my intolerance for short-term risk. In conclusion, I would like to adjust my portfolio risk profile to better match my own risk tolerance level.