As per experts, investing in mutual funds is not enough; investors should also keep a timely check on their investments to achieve their financial goals.
Mutual fund investment is a common practice today and there are multiple factors investors need to consider while investing. But the work doesn’t end here; as per experts, investing in mutual funds is not enough; investors should also keep a timely check on their investments to achieve their financial goals.
“Monitoring your mutual funds ensures that they remain aligned with your financial objectives. Over time, market conditions and your personal circumstances may change. Regular tracking helps you make informed decisions to rebalance your portfolio, allocate resources effectively, and adjust your strategy as needed,” said Amit Gupta, MD, Sag Infotech.
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Why is it important to track mutual fund investments?
According to Chirag Muni, Associate Director, Anand Rathi Wealth Limited, the following are the reasons one should track their mutual fund investments:
– Funds are cyclical in nature; that is, their returns may change over time. Therefore, funds should be reviewed regularly to ensure that the funds you have invested in have the potential to continue delivering in the long run.
– To keep track of whether the fund portfolio is aligned with changing market dynamics.
– To help keep a tab on fund management changes and their impact on the portfolio construct.
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Here are some expert tips to keep track of your mutual fund investments:
-Compare against the benchmark index and the category.
– Evaluate the fund’s performance over different time periods to identify new trends.
– The future potential of funds.
– Revisit initial reasons for investing in the fund if there is any deviation in the asset allocation strategy.
“One can track changes in the benchmark, changes to the fund manager, changes in fees, changes to the auditor, trustee, custodian, etc. when keeping track of their mutual funds,” said Abhishek Banerjee, Founder & CEO, Lotusdew Wealth & Investment Advisors Pvt Ltd.
Here are some ways to track mutual fund investments:
1. Mobile Apps
Download apps provided by fund houses or financial platforms to receive real time updates on your investments. These apps offer convenience and ease of access, putting essential investment information at your fingertips.
2. Online Portals
Many fund houses and financial institutions offer online portals where you can log in and view detailed performance reports, historical data, and fund-related documents.
3. Email Alerts and Newsletters
One can stay updated about their mutual fund investments through email alerts and newsletters
