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.
 

-----------------------------------------------------------------

 

Also, know how to buy mutual funds online:

 

1) DSP BlackRock Mutual Funds:

http://prajnacapital.blogspot.com/2011/05/buying-dsp-blackrock-mutual-funds.html

 

2) Reliance Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-reliance-mutual-funds-online.html

 

3) Birla Sunlife Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-birla-sunlife-mutual-funds.html

 

4) UTI Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-uti-mutual-funds-online.html

  

5) SBI Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-sbi-mutual-funds-online.html

 

6) Edelweiss Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-edelweiss-mutual-funds-online.html

 

7) IDFC Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-idfc-mutual-funds-online.html

 

Popular posts from this blog

Group Health Insurance

Buy Group Health Insurance Online   For Human Resources, the biggest challenge today is to decide whether medical benefits should be offered to employees or not, what type of plans should be offered, what will be the cost and how will the cost be split between employees and employer. Well, most of these are subjective and would depend on a lot of factors including company size, average employee salary, etc. However, this article will give you a fair idea on how you should go about deciding these factors: 1. Why offer group health insurance benefit to employees : Studies have proved that retention rates among employers offering GHI are much higher than the ones who are not offering. Moreover, the cost of providing this benefit as a percentage of salary is very low as compared to the perceived value. As an example, say if average salary of an employee in your organization is 4 LPA. If you decide to offer a health insurance benefit to him for a Sum insured of ...
Read more

JM Financial Mutual Fund - Its Schemes

  JM Financial Mutual Fund is a part of JM Financial Group which is one of the first mutual fund companies in India which started its operation in 1993-1994. JM Financial Asset Management Limited is sponsored by JM Financial group. The mission of the group company is to generate good returns in all the product categories. JM Financial Mutual Fund has launched a variety of schemes in the following categories. ·                            Equity ·                            Debt ·                            Arbitrage ·                            Liquid Equity Schemes: The schemes that are launched in the equity category are: ·                            JM Midcap Fund ·                            JM Balanced Fund ·                            JM Agri and Infra Fund ·                            JM Basic Fund ·                            JM Contra Fund ·                            JM Contra Fund ·                            JM Emerging Leaders Fund ·             ...
Read more

Birla Sun Life MIP II Savings 5

  Birla Sun Life MIP II Savings 5 - Invest Online   Have you traditionally been a debt investor but now wish to test waters in equities? Then, debt-oriented funds such as Birla Sun Life MIP II Savings 5 (Birla Savings 5), which have limited exposure to equities, may fit your requirement. With a five year return of 10.5 per cent compounded annually, the fund managed a good 3-3.5 percentage points more than its benchmark Crisil MIP Blended Index, as well as its category average. The fund appears well poised to capitalise on a falling interest rate scenario and has increased the average portfolio duration of its debt instruments in recent times. Suitability Birla Savings 5 is suitable only for conservative investors. If you want to make a beginning in equities and cannot take any short-term declines in your stride, then this fund will suit you. If you are already an equity investor and want to use a debt-oriented fund merely as a diversifier, then you may prefer peers from the HDFC and Re...
Read more

Commercial Paper (CP)

Invest Mutual Funds Online Download Mutual Fund Application Forms Commercial Paper (CP): These are issued by corporate entities in denominations of Rs.2.5mn and usually have a maturity of 90 days. CPs can also be issued for maturity periods of 180 and one year but the most active market is for 90 day CPs.   Two key regulations govern the issuance of CPs-firstly, CPs have to be compulsorily rated by a recognized credit rating agency and only those companies can issue CPs which have a short term rating of at least P1. Secondly, funds raised through CPs do not represent fresh borrowings for the corporate issuer but merely substitute a part of the banking limits available to it. Hence, a company issues CPs almost always to save on interest costs ie it will issue CPs only when the environment is such that CP issuance will be at rates lower than the rate at which it borrows money from its banking consortium. ----------------------...
Read more

Why credit history is critical?

Will you need a loan to buy a car or a house? Do you know why some people get their loans sanctioned quickly without any hassle, whereas others find that their approval is delayed or their application is rejected? If you want a loan, you will need to work to build a solid credit history because this can have a bearing on the ease with which you get loans. Read on to learn more about what is a credit history and how to build a good credit score. What is a credit history? Your credit history is a way of tracking your credit behaviour and habits — basically it shows how disciplined and regular you are when it comes to repaying your dues on loans that you have taken. It will show a complete record of your past borrowing and repayment record including details about any late payments or if you have defaulted on a loan. This track record is readily accessible to lenders and is used by them to when reviewing your loan application. Borrowers who have historically had a bad record of managing...
Read more
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