How to Monitor Your Mutual Fund Portfolio?

Ways to Monitor Your Portfolio

1. Online Portfolio Trackers

An online portfolio tracker serves as a valuable tool for monitoring the performance of your mutual fund investments. Various platforms offer online tracking tools, providing functionalities beyond mere tracking. These tools go a step further by offering suggestions for superior funds if any fund in your portfolio is underperforming.

All you need to do is sign up with any online portfolio tracker with your email ID and PAN. The tracker will give you a consolidated view of all your mutual fund investments. You can view the performance of individual funds, and some trackers compare funds’ performance with a benchmark index like the Nifty 50. Some of them also allow you to identify any hidden fees that can avoid paying and exposure to high risk, if any.

2. Website of AMC

This is another way to keep a tab on your mutual fund portfolio. That said, the process can be time-consuming if you’ve invested in more than one mutual fund. In such a scenario, it’s better to use an online portfolio tracker.

3. Consolidated Account Statement (CAS)

CDSL (Central Depository Services Limited) or NSDL (National Securities Depository Limited) sends the CAS to the registered email IDs. CAS consolidates all monthly financial transactions conducted under the same PAN (permanent account number) across fund houses and folios. You can also get the statement online. All you need to do is:-

• Visit the CAMS website and navigate to the MF investors section.
• Click on ‘Statements’ and choose ‘CAS – CAMS’ to obtain a consolidated view of your mutual funds across RTAs (registrars and transfer agents).
• Enter your registered email ID and create a password for the document.
• You will get an email along with a link to the document. Use the same password you provided to access your CAS.

4. Mutual Fund Factsheet

A mutual fund fact sheet provides an overview of mutual fund schemes, specifically focusing on the portfolio and performance. It resembles a report card tailored for mutual funds, indicating the fund’s health. Asset management companies (AMCs) release monthly fact sheets that are accessible on their website.

The fact sheet is an excellent starting point if you aim to initiate tracking your mutual fund performance. You get the following information in a fund’s factsheet:-

• Scheme information - This section provides information about the scheme’s objective, fund manager’s expertise, expense ratio, net asset value, and portfolio turnover, among others.

• Portfolio data - In this section, you will find information about the fund’s investment details, i.e., where it invests the money. It also contains details about asset allocation and rating of securities.

• Fund performance - This section of the fact sheet presents data on mutual fund returns and SIP (systematic investment plan) returns. It also compares the returns with the benchmark and indicates whether the fund has outperformed the market index.

Importance of Tracking Mutual Fund Portfolio

Tracking your mutual fund portfolio is crucial for staying on top of your investments and making informed decisions. Here’s why it’s essential in simple terms:

• Know Your Progress: Tracking your mutual fund portfolio lets you see how your investments perform over time. By regularly checking in, you can celebrate the gains and address any losses, giving you a clear picture of your financial progress.

• Stay In Control: Think of your portfolio as a garden that needs attention. Monitoring it lets you identify if any “weeds” (underperforming funds) are taking over. Being aware of changes in your investments helps you stay in control and adjust as needed.

• React to Changes: The financial market is like a rollercoaster, with ups and downs. Tracking your portfolio enables you to react promptly to market changes. If a particular fund is not performing well, you can consider reallocating your investments to potentially more profitable options.

• Tax Planning: Some investment decisions can have tax implications. You can plan your taxes more effectively by keeping an eye on your mutual fund portfolio. This might involve taking advantage of tax-saving opportunities or managing capital gains.

In Conclusion

In essence, tracking your mutual fund portfolio is like steering a ship. Regularly checking your course ensures you’re headed in the right direction, helping you navigate the financial seas and make adjustments as needed.