Skip to main content

Track performance make the best use of Mutual Fund Investment

 

A SIGNIFICANT part of the mutual fund investment process involves tracking the performance of the various funds. In many cases, apart from the funds where the investment has taken place, it is also necessary to track how some other funds are doing because they might represent future investment choice for the investor.

This will help the investor to keep a close watch on their investment portfolio and will also throw up areas where some changes need to be made. While tracking the fund performance, there is a need to keep the following factors in mind.

Time period: The time period after which the fund performance is tracked has an impact on the effectiveness of the entire process. A daily tracking of the situation might not help because over a period of time this will lead to a situation where the overall position looks confusing because there will be short-term movements in either direction. On the other hand, if a fund is taken into the portfolio and then forgotten, then this will also not be a very good sign. It can lead to a position where significant changes might not come to attention. This is the reason why there has to be a reasonable time gap after which the performance can be tracked. A period of one month or even three months is the generally adopted time when such an activity is undertaken.

Areas to track: The time decided for the purpose of tracking will lead to another question which is the area that has to be tracked.

This point will answer several questions and, hence, deciding on this issue is a very important thing for the individual. One of the things that have to be tracked is the kind of gains or losses that are running up in the investment. This depends upon the time of investment and the manner in which the fund has been performing after the investment. This will not give a complete picture so something more is required. When it comes to mutual funds then it can be the portfolio of the fund or other indicators like ratios that measure risk so that it presents a better picture for the investor.

Availability of details: Another thing that has to be kept in mind is that the tracking has to have synchronisation with the availability of new details emerging from the mutual fund. This is the only way in which the tracking can be made effective as there will be new information that can be processed and hence acted upon where necessary. For example, it makes no sense to keep

looking at the portfolio of the fund on a weekly basis when the fund is actually releasing the changes in portfolio on the monthly basis. If the weekly tracking is done then no change will be visible for a lot of weeks and then nothing needs to be reviewed.


Other details: It is not just the portfolio and the changes in the value of the fund that actually need tracking because there are a lot of the other areas that might be important for the individual.


This happens as other conditions related to the fund like the manner of charging of the exit load or even the period when there is a lock in on the fund can have changed.

When this happens then the consequent decisions of the individual will also change and looking at these areas is essential to keep things in proper balance while making various decisions. Apart from all this it is also vital that all the information gathered is then acted upon.
 

Popular posts from this blog

ULIP Review: ProGrowth Super II

  If you are interested in a death cover that's just big enough, HDFC SL ProGrowth Super II is something worth a try. The beauty is it has something for everybody — you name the risk profile, the category is right up there. But do a SWOT analysis of the basket, and the gloss fades     HDFC SL ProGrowth Super II is a type-II unit-linked insurance plan ( ULIP ). Launched in September 2010, this is a small ticket-size scheme with multiple rider options and adequate death cover. It offers five investment options (funds) — one in each category of large-cap equity, mid-cap equity, balanced, debt and money market fund. COST STRUCTURE: ProGrowth Super II is reasonably priced, with the premium allocation charge lower than most others in the category. However, the scheme's mortality charge is almost 60% that of LIC mortality table for those investing early in life. This charge reduces with age. BENEFITS: Investors can choose a sum assured between 10-40 times the annualised premium...

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...

Section 80CCD

Top SIP Funds Online   Income tax deduction under section 80CCD Under Income Tax, TaxPayers have the benefit of claiming several deductions. Out of the deduction avenues, Section 80CCD provides t axpayer deductions against investments made in specific sector s. Under Section 80CCD, an assessee is eligible to claim deductions against the contributions made to the National Pension Scheme or Atal Pension Yojana. Contributions made by an employer to National Pension Scheme are also eligible for deductions under the provisions of Section 80 CCD. In this article, we will take a look at the primary features of this section, the terms and conditions for claiming deductions, the eligibility to claim such deductions, and some of the commonly asked questions in this regard. There are two parts of Section 80CCD. Subsection 1 of this section refers to tax deductions for all assesses who are central government or state government employees, or self-employed or employed by any other employers. In...

Merger of Tata Indo-Global Infrastructure Fund with Tata Equity Opportunities Fund

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 Merger of Tata Indo-Global Infrastructure Fund with Tata Equity Opportunities Fund Tata Mutual Fund has decided to merge Tata Indo-Global Infrastructure Fund with Tata Equity Opportunities Fund, with effect from January 16, 2015.   Investors of Tata Indo-Global Infrastructure Fund can redeem/ switch out units from December 13, 2014 to January 12, 2015 without paying any exit load. For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call Leave a missed Call on 94 8300 8300 Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com --------------------------------------------- Invest Mutual Funds Online Invest Any Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund A...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now