When people talk about making their money work harder, they often jump straight to performance. In reality, strong outcomes usually come from structure rather than prediction.

A good portfolio does its job quietly in the background. It’s built around what you want your money to do, takes a sensible level of risk and avoids unnecessary tax and costs getting in the way. That is the kind of setup we are aiming for in 2026.

(Psst. This piece is for people who are already investing and want to make sure their portfolio is working as hard as it can. If you are just getting started, take a look at our Getting started with investing guide first.)

Understanding investment portfolios

An investment portfolio is simply the collection of investments you own and how they are spread across different assets, such as shares, bonds and cash. That balance matters because it shapes most of your experience as an investor.

The mix you hold affects how much your portfolio can grow, how much it moves up and down along the way and how well it holds up when markets are unsettled. Two people can invest in the same markets and end up in very different places, simply because their portfolios are structured differently.

Portfolios also tend to change over time. New accounts get opened, money is added at different points and markets move at different speeds. Without regular attention, what started as a sensible setup can gradually drift away from what you actually need.

The five moves

1. Get risk under control

Risk gives your portfolio the potential to grow, but only when it is aligned with what the money is for and how long it has to work. If risk is higher than needed, the ups and downs can feel uncomfortable or distracting. If risk is too low, your money may struggle to keep up over time.

Risk can also change without you noticing. When markets do well, growth assets can take up more space in your portfolio. At the same time, life moves on. Your plans, income or time horizon may not look the same as they did a few years ago.

Action: Write down what the money in your portfolio is for and roughly when you expect to use it. Then check whether your current mix of investments still makes sense for that timeframe, rather than relying on what felt right in the past.

2. Automate rebalancing

As markets move, different parts of a portfolio grow at different speeds. Over time, this shifts the balance between assets and changes the level of risk you are taking, often without it being obvious.

Rebalancing brings the portfolio back towards its original structure by trimming areas that have grown and topping up those that have fallen behind. It is a practical way to manage risk and keep your plan on track.

Automation matters because it removes the need to decide when to act. The process happens consistently, regardless of market noise.

Action: Check whether your portfolio rebalances automatically. If it does not, look at setting rules or a schedule so it happens without relying on ad-hoc decisions.

3. Use technology to see the whole picture

Investment decisions are easier when everything is viewed together. Looking at accounts in isolation can make it hard to judge overall risk, plan contributions or understand how today’s choices affect future options.

Good technology pulls investments, tax wrappers and cashflow into one place and allows you to model different scenarios. This helps turn planning from guesswork into something more tangible.

Action: Move beyond simply checking performance and use tools that show how your investments fit into your wider financial picture.

If you want help seeing your whole financial picture in one place, book a conversation with an Octopus Money expert.

4. Use tax allowances deliberately

Tax has a big impact on how much of your return you actually keep, yet it is often dealt with late or not at all. Each tax year comes with allowances for ISAs, pensions, capital gains and dividends. If you don’t use them, they disappear.

Using allowances well rarely means changing what you invest in. It is usually about being more intentional about where investments sit and when decisions are made.

This might be:

• Moving investments from a taxable account into an ISA over time to reduce tax on future growth and income
• Making pension contributions earlier in the tax year so money has longer to grow, rather than waiting until deadlines approach
  
• Spreading the sale of investments across tax years to make better use of capital gains allowances
• Thinking about whether income is best taken as dividends now or reinvested, depending on your allowance position

Action: Write down where each of your investments is held and which tax allowances you are using. Then decide which allowances you want to prioritise before the end of the tax year.

5. Make sure fees are earning their keep

Fees are one of the few things in investing that are predictable. You may not know what markets will do next year, but you do know that fees will be taken every single year.

What often gets missed is how much those fees add up over time. A small difference can seem harmless at first, but over the years it can take a noticeable chunk out of your returns, because fees keep chipping away as your money grows.

Paying fees is not the problem. The problem is paying them without really knowing what you are getting back in return.

Costs can show up in a few different places, like platform charges, fund fees and advice fees. Sometimes they overlap. Sometimes they are built into older products that have never been properly looked at since they were set up.

What fees can cost over time

Let’s assume you have £100,000 invested over 20 years, with 5% annual growth before fees.

Annual fee	Value after 20 years	Total cost of fees
0.25%	~£247,000	~£18,000
0.75%	~£220,000	~£45,000
1.25%	~£196,000	~£69,000

That difference is not about markets or risk. It comes down to costs alone.

This does not mean that everyone should aim for the lowest possible fee. Paying for proper diversification, ongoing oversight or advice can be worth it if it leads to better decisions or avoids costly mistakes. The issue is usually fees that no longer serve a clear purpose.

This might be:

• Paying multiple layers of fees across platforms and funds without realising
• Holding older funds with higher charges that have never been reviewed
• Paying for complexity that no longer fits your situation
• Paying for advice or management without being clear what it covers

Action: Add up all the fees you are paying across platforms, funds and advice. Then ask a simple question. What am I getting for this, and would I make the same choice again today?

Bringing it all together

A portfolio that works harder in 2026 is rarely about doing more or making constant changes. It is about putting the right structure in place, so your money stays aligned with your goals as markets move and life evolves.

Clear risk, built-in discipline, a joined-up view of your money, sensible use of tax rules and fees that earn their keep all play a part. When those pieces fit together, your portfolio is better placed to support the life you want, rather than becoming something that needs ongoing fixing.

Want a second pair of eyes on your portfolio?

If you’ve not looked at everything together for a while, now is a good moment to do so. An Octopus Money expert can help you step back, see the full picture and sense-check whether small changes could make a meaningful difference, with a clear, practical conversation focused on what matters most to you.

Important information

Investing involves risk. The value of investments can go down as well as up, and you may get back less than you invest. Past performance is not a reliable indicator of future results. Tax treatment depends on individual circumstances and may change over time.