Mutual funds continue to be a popular investment tool that can potentially grow an investor’s savings in the long term.
However, it remains crucial to track mutual fund investments to ensure one is on track while addressing the various financial goals. An investor can keep a tab on the performance of their investments and make informed decisions about the investment portfolio.
Investing in mutual funds through a systematic investment plan (SIP) puts an investor to adopt a more disciplined and resilient approach to wealth creation while meeting the need to achieve various financial goals.
However, it remains equally important to track the mutual fund’s investment progress from time to time, which can be undertaken in the following way:
Review the investment portfolio: This is the first step in tracking the mutual fund investments for any retail investor. It is important to review the investment portfolio at least once a quarter to ensure that it continues to remain aligned with the financial goals.
Monitor the performance: This is important to ensure that the investment pattern is on track to meet financial goals. This can be undertaken by checking the Net Asset Value (NAV) and comparing it with their respective benchmark index.
Remain watchful of expenses: Mutual funds charge an expense ratio for managing the fund. It is crucial to remain watchful of expenses charged by the mutual fund as it can have a significant influence on returns.
Rebalance the portfolio: This is again important to ensure that the mutual fund investments are aligned with the financial goals. Rebalancing the portfolio at least once a year or when there is a significant change in market conditions is an exercise that an investor should adopt.
Rely on technology: For any investor, it is quite easy to track their mutual fund investments through various technological advancements. For instance, one can use online platforms and SIP calculators to make better investment decisions in the long run.
Rajiv is an independent editorial consultant for the last decade. Prior to this, he worked as a full-time journalist associated with various prominent print media houses. In his spare time, he loves to paint on canvas.