A balanced and well-performing investment portfolio is an aim for any savvy investor. At the end of the day, regardless of how our funds are divvied up between stocks, bonds and other entities, we want to ensure that we have struck the right balance. Yet, how confident are you that your portfolio has the right amount of risk and is generating a sufficient amount of income? If you’re still struggling with rating your portfolio’s performance, keep reading. Today, we’re taking a look at five ways to analyze your income-focused portfolio to make sure your money is working for you like it should be.

1. Understand the research materials.

If you’re an investor, you should be receiving fund materials on a routine basis detailing the performance of your actively managed fund. Usually known as a prospectus with accompanying documentation included, this data can be dense to read, but it can provide a wealth of information for those dedicated enough to absorb it. You can also track your index online to keep pace with more timely updates.

Monitor the prospectus to see how your fund is doing. Is the trend generally upward or have you noticed a gradual decline? Partner with your financial advisor to understand the appropriate benchmarks you should be looking for and comparing the assets against.

2. Compare against target-date funds.

Put simply, a target-date fund is a portfolio designed with a strategic mix of stocks and bonds designed to be ideal for someone with a set retirement date. Traditionally, the mix shifts gradually from stocks to more risk-averse bonds as the date nears.

If you can’t pinpoint a benchmark for your retirement portfolio as a larger entity, it can be helpful to compare your current setup against a target-date setup designed with a similar asset mix as yours. This way, you can see if you’re at least on the right path toward meeting your earning potential. You can also gauge how much you could stand to earn by slowly shifting your asset mix as well to mimic the target-date fund pattern.

3. Use industry calculations.

From standard deviations to total returns to shareholders, there are myriad calculations you can perform to determine how an individual stock or bond is performing. To get a more big-picture view, consider examining how your portfolio did as a whole in relatively rough market waters. For instance, take a look at the last bear market. How did yours hold up? If the market only dipped 20 percent, but you’re looking at a 30 percent or greater loss, that could be an indication that it’s time to readjust your holdings.

4. Be willing to wait.

While you might be tempted to make a total rehaul of your portfolio after analyzing its more recent performance, keep in mind that long-term growth takes time and is a gradual process. Instead of looking for the asset mix that will afford a skyrocketing initial yield, look at one that has a solid history of performing well. You could get a great deal at the onset, but be wary of up-and-coming stocks that promise a high return but may not have the infrastructure in place to make good on that guarantee. Especially if the stock is new to hit the market, a high initial yield might be exciting but could ultimately work against you once the market catches up over time.

Your financial advisor can help you benchmark smartly and strategically to ensure you’re on the uptick, helping you navigate risk levels and better understand market conditions.

5. Consider switching to an index fund.

If, during your research, you notice that your portfolio’s performance doesn’t follow any recognizable patterns, it could be that your asset mix is too unique or unusual. If that is the case, it might be wisest to transition your holdings over to a more traditional index fund. These are essentially funds that track a mainstream, standard index. Whether you opt for a fund that comprises the entire market or focuses on a particular niche, it will be designed to follow basic trends and can help prevent anomalies from occurring and changing your entire growth curve. The good news about going with an index fund is that there is no guessing what the appropriate benchmark is. Rather, you’ll have a standard to go by and can monitor from there.

Ultimately, deciding how to create and maintain your investment portfolio is a personal decision. Yet, it’s important to check in frequently to make sure yours is performing up to speed. If you’re unsure how to check or not clear on which benchmarks you should be comparing yours against, talk to your advisor and dig deeper into the available research. Then, you’ll be better able to make your next financial decision with confidence.