Performance Measurement

Performance measurement in investments and portfolio management involves evaluating how well an investment or group of investments is doing over time. It assesses returns compared to benchmarks, like stock market indexes, to determine effectiveness. Metrics such as total return, risk-adjusted return, and volatility help investors understand growth potential and risks. This analysis helps investors make informed decisions about buying, holding, or selling assets, ensuring their investment strategy aligns with their financial goals and risk tolerance. In short, it’s about understanding if an investment is meeting expectations and delivering value.