Calculating the net worth of investments is the process of determining the total value of an investment portfolio. It involves adding up the current value of all assets held in the portfolio and subtracting any outstanding liabilities associated with the investments.
Calculating net worth is a crucial aspect of financial planning. It provides a clear picture of an individual’s financial health, making it easier to track progress towards financial goals. It also helps identify areas where adjustments to investment strategies may be necessary to optimize returns and manage risk.