Difference Ways to Track Mutual Fund Performance

By Advisorymandi
17-November-2018 12:11:41 PM

Investing in mutual funds, no doubt helps the people to achieve their financial objectives but it is also
important to track the mutual fund investments. Many people take the necessary advice and research
before selecting the funds and once they are done, they forget to keep a tab on their investments until a
need crops up.
It is imperative to note that making an investment in a mutual fund is only a job half done. Just as your
health or vehicle needs a check-up on a timely basis, you must also keep an eye on your mutual fund
performance. While it is not necessary to check the value of investments on a daily basis but making it a
habit will help you get updated about the progress in your mutual fund portfolio.

Ways to Track Mutual Fund Performance

Here are some of the prominent ways of tracking mutual fund investments to check their progress and get
the most from your funds:

Fund Factsheet

ost of the prominent details about the mutual funds in which you have invested is available in the fund
fact sheet. It is essentially a user-friendly document that helps you the track progress of your investments
managed by an Asset Management Company (AMC) or the mutual fund managers. It is rolled out by the
fund house on a monthly basis that can be found easily on their website. It contains the following details:

Important Information About the Scheme

• Scheme Name
• The objective of making an investment
• Type of Scheme
• Fund manager name and experience
• Date of initial allotment post NFO
• Average Assets Under Management (AUM)
• Latest AUM as on fact sheet date
• Latest Net Asset Value (NAV) per unit
• Load information
• Benchmark
• Expense Ratio
• TER – Regular Plan & Direct Plan
• Dividend History

Portfolio Data

• Investment in securities
• Allocation by sector for equities
• Allocation – Asset as well as rating-class for debt


Quantitative/Volatility Measures

• Standard Deviation for equity fund
• The beta for equity fund
• Sharpe Ratio for equity fund
• Portfolio turnover for equity fund
• Modified Duration for debt fund
• Average maturity for debt fund

• Portfolio Yield
• Tracking Error (in case of passive Index fund/EF)


Fund Performance/Returns

• Returns of both the liquid and non-liquid funds
• Systematic Investment Plan (SIP) returns
• Securities where the money has been invested
• Performance of the funds considering various benchmarks like CAGR, Beta, Standard Deviation
and Sharpe Ratio.
• Size of an investment

Disclosure Documents

You can also ask for the disclosure documents from the fund houses for the purpose of tracking mutual
funds performance. The disclosure documents bring more transparency when it comes to assessing
information about the various securities where the money has been invested by the fund managers. It
contains the following prominent details:
• Investment objective
• Expense ratios
• Fund details
• Fund’s past performance

The disclosure documents can be assessed from the mutual fund company.


Consult Your Mutual Fund Advisor

If you do not have much time to check out the performance of your mutual funds or you are finding it a
difficult task to understand some of the financial terms, then, in that case, you can consult your mutual
fund advisory to explain changes in your investment portfolio. You can even question them why the
mutual fund prices are suddenly falling or rising.
The Bottom Line
You do not have to be a market wizard to track or know your mutual fund performance. While you
always have the assistance of the mutual fund managers to seek professional guidance, but it makes a
great sense to periodically monitor and review the performance of your funds to ensure that your hard-earned
money is not lost and you meet your investment objective.

Note: All information & data provided in this article is for the educational purpose as well as to give
general information on the finance & economy, not to provide any professional advice or service. Views
& opinions are not biased against the company and do not affect any official policy or any other agency,
an organization within the content.

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Author: Advisorymandi

AdvisoryMandi is India's most trusted Stock Market Advisory marketplace covers NSE, BSE, MCX & NCDEX. Invest with confidence and harness the power of AdvisoryMandi to make smarter investment decisions in Stocks, Indices, Commodities, Forex & IPO.

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