Review your goal-based investment portfolio with this auditing tool

Published: August 27, 2023 at 6:00 am

Last Updated on August 27, 2023 at 10:55 am

We present a simple spreadsheet to review and audit your goal-based investment portfolios. Over the years, we recognised the need for a tool beyond financial planning and portfolio value/return tracking.

A financial planning calculator tells you the target corpus for a goal and the investment amount required.  A portfolio tracker only tells you the current corpus value and return of various products in the portfolio.

However, how will you know after you start investing that you are on the right track?  How will you know that your portfolio is growing along expected lines? What if you cannot invest the necessary investment amount? What if your current asset allocation differs from the suggested one?

There should be a tool to track the growth of a goal-based portfolio by comparing it to the expected growth of the target corpus. If necessary, the tool should be used to chart a custom course for the investment journey with the target corpus obtained from the financial planning tool as a guide.


Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email!
🔥Enjoy massive discounts on our robo-advisory tool & courses! 🔥

The freefincal Goal-based Portfolio Review/Audit Tool is designed to answer these questions. It has its origins in our goal-based portfolio management course. This is a screenshot from the course showing the expected portfolio growth vs. actual portfolio growth for a specific scenario.

Expected portfolio growth vs actual portfolio growth
Expected portfolio growth vs. actual portfolio growth. This is not a screenshot from the tool.

The course discusses ways to systematically reduce portfolio risk to ensure we get close to our target corpus (or do better) regardless of market conditions. The freefincal robo advisory tool automates this risk reduction process and provides a financial plan suitably.

The idea is to create a spreadsheet where the user can simulate the expected portfolio growth (blue line above). The user enters the current portfolio value each year to build the red line point-by-point from one year to another in the investment journey.

This will give the user confidence that they are on the right track. The user can also vary the asset allocation schedule in the planner from year to year to develop a custom de-risking schedule that considers their present asset allocation and risk appetite.

Here are a couple of screenshots.

Screenshot of the freefincal Goal-based Portfolio Review Planner - part 1
Screenshot of the freefincal Goal-based Portfolio Review Planner – part 1
Screenshot of the freefincal Goal-based Portfolio Review Planner - part 2
Screenshot of the freefincal Goal-based Portfolio Review Planner – part 2

Introductory video

Q & A about the freefincal Goal-based Portfolio Review/Audit Tool

  1. Is it a financial planner?
  2. Is it a portfolio tracker?
  3. Can I use the portfolio review/audit tool independent of a financial planning calculator or a portfolio tracker?
    • In principle, yes, but you will likely need all three tools. The review/audit tool needs inputs from both a financial planning calculator and a portfolio tracker.
    • A financial planning calculator shows how much to accumulate for a goal and how much to invest. This can be modified in the review/audit tool to customise your own asset allocation schedule.
    • A portfolio tracker is needed to obtain the current portfolio value for a goal.
  4. What are the inputs for the portfolio review/audit tool?
    • Current value of equity and other liquid holdings and their asset allocation
    • Planned asset allocation of equity and other holdings. This can be modified each year for the forthcoming years.
    • Expected returns for these asset classes.
    • Annual investment in the first year and increase each year.
    • Actual annual investment made – to be updated once a year.
    • Actual corpus value – to be updated once a year.
  5. What are the outputs?
    • The expected investment schedule, the expected corpus growth.
    • The two graphs above will gradually populate point by point after each annual review.

How should I use the audit tool?

As the actual corpus value data points accrue, you will know where you stand compared to anticipated corpus growth. Things are fine if you are too far away and nothing needs to be done. You may need to change asset allocation and/or increase investments if the deviation is significant.

If you choose a step-wise asset allocation schedule as explained here – How to reduce risk in an investment portfolio – the chances of significant or frequent changes are reasonably low, as determined by hours of backtesting and explained in our portfolio management course.

What are the benefits?

  • You can adjust the future asset allocation schedule according to your current holding. This is especially useful if you have too much fixed income in your portfolio and wish to increase equity holdings in future.
  • You get a picture of “where you are” in your investment journey, which helps prevent unnecessary changes in funds or asset allocation.
  • It shifts the focus away from chasing returns and emphasises the importance of portfolio value and growth.

Presentation: It is available as an Excel sheet. Since it has no macros, it can run on any spreadsheet app like Open Office, Mac Excel, Mac Numbers, Google Sheets or Excel Cloud.

Price: One-time fee of Rs. 1000 500 only (50% launch discount)– includes all future bug fixes and feature updates.

Use this link to get the freefincal Goal-based Portfolio Review/Audit Tool.

Do share this article with your friends using the buttons below.

🔥Enjoy massive discounts on our courses, robo-advisory tool and exclusive investor circle! 🔥& join our community of 5000+ users!
Use our Robo-advisory Tool for a start-to-finish financial plan! More than 1000 investors and advisors use this!
New Tool! => Track your mutual funds and stocks investments with this Google Sheet!
Follow Freefincal on Google News
Follow Freefincal on Google News
Subscribe to the freefincal Youtube Channel. Subscribe button courtesy: Vecteezy.
Subscribe to the freefincal Youtube Channel.
Podcast: Let's Get RICH With PATTU! Every single Indian CAN grow their wealth! 
Listen to the Lets Get Rich with Pattu Podcast
Listen to the Let's Get Rich with Pattu Podcast
You can watch podcast episodes on the OfSpin Media Friends YouTube Channel.
Lets Get RICH With PATTU podcast on YouTube
Lets Get RICH With PATTU podcast on YouTube

  • Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
  • Have a question? Subscribe to our newsletter with the form below.
  • Hit 'reply' to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question.

Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email!

Explore the site! Search among our 2000+ articles for information and insight!

About The Author

Pattabiraman editor freefincalDr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over ten years of experience publishing news analysis, research and financial product development. Connect with him via Twitter or Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice.
Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! More than 3000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter what the market condition is!! Watch the first lecture for free!  One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Our new course!  Increase your income by getting people to pay for your skills! More than 700 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts you and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!   
Our new book for kids: “Chinchu gets a superpower!” is now available!
Both boy and girl version covers of Chinchu gets a superpower
Both boy and girl version covers of Chinchu gets a superpower.
Most investor problems can be traced to a lack of informed decision-making. We have all made bad decisions and money mistakes when we started earning and spent years undoing these mistakes. Why should our children go through the same pain? What is this book about? As parents, what would it be if we had to groom one ability in our children that is key not only to money management and investing but to any aspect of life? My answer: Sound Decision Making. So in this book, we meet Chinchu, who is about to turn 10. What he wants for his birthday and how his parents plan for it and teach him several key ideas of decision-making and money management is the narrative. What readers say!
Feedback from a young reader after reading Chinchu gets a Superpower (small version)
Feedback from a young reader after reading Chinchu gets a Superpower!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.
Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook is for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or you buy the new Tactical Buy/Sell timing tool!
We publish monthly mutual fund screeners and momentum, low volatility stock screeners.
About freefincal & it's content policy. Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
Our publications

You Can Be Rich Too with Goal-Based Investing

You can be rich too with goal based investingPublished by CNBC TV18, this book is meant to help you ask the right questions and seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want Gamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantThis book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.

Your Ultimate Guide to Travel

Travel-Training-Kit-Cover-new This is an in-depth dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, and how travelling slowly is better financially and psychologically, with links to the web pages and hand-holding at every step. Get the pdf for Rs 300 (instant download)