How to track your mutual fund portfolio?


Mutual funds have emerged as the preferred investment option among investors worldwide in recent years. A mutual fund is a financial intermediary that collects money from multiple investors and then invests it in stocks, bonds, and other securities. It offers a range of benefits to investors looking to invest for short or long-term financial goals. 

mutual fund

Here are some of the advantages of investing in mutual funds: 

1. Professional Management 

One of the most significant advantages of investing in mutual funds is that they are managed by professional fund managers with years of experience in investment management. These managers conduct extensive research on stocks, bonds, and securities to ensure their mutual fund portfolios generate maximum returns for investors. 

2. Diversification 

Diversification reduces risk and helps investors to safeguard their investment portfolios and protect them from market volatility. Mutual funds offer a range of investment options across various sectors and stocks, thereby reducing the risk of losses resulting from a market downturn. 

3. Liquidity 

Most mutual funds offer high liquidity, which means an investor can liquefy or redeem their investment quickly and easily. Investors can typically redeem their mutual funds and receive their funds in their accounts within a few business days, allowing quick access to cash when needed. 

4. Affordability 

Mutual funds are affordable and suitable for investors who want to invest in the stock market but do not have large sums of capital. An investor can invest in a mutual fund with as little as ₹100, with the option to invest in a lump sum or through systematic investment planning. 

5. Tax Benefits 

Investing in mutual funds provides several tax benefits to investors under the provisions of the Income Tax Act. Investors can claim deductions of up to £1.5 lakh on their tax returns. Dividends paid by the AMCs are also tax-free, and capital gains taxes on mutual fund investments are lower than that on other investments. 

Investing in mutual funds can be an excellent way to grow your wealth over time. 

However, tracking multiple mutual fund investments can quickly turn into a daunting task. 

Let us take a closer look at why tracking your mutual fund portfolio is essential. 

1. Keep Up to Date with Fund Holdings 

Mutual funds invest in a range of securities like stocks, bonds, and other financial assets. Keeping track of your portfolio regularly allows you to keep up to date with the portfolio's holdings and gain insights into the assets your mutual fund is investing in. It ensures that the mutual fund scheme stays aligned with your financial goals and needs. 

2. Evaluate Performance 

The primary reason anyone invests their money in mutual funds is to gain high returns. Tracking your mutual fund portfolio provides you with information on the fund’s performance and the returns gained thus far. It allows you to assess the performance relative to the mutual fund's benchmark and make informed decisions to optimize returns. 

3. Diversification 

Mutual funds provide diversification by investing in a range of securities across various sectors and asset classes. To ensure diversification, investors may need to invest in multiple mutual fund schemes. Tracking your portfolio allows you to make informed decisions on which mutual fund companies, sectors, or asset classes to invest in to enhance diversification. 

4. Manage Risks 

Risks are inherent in any investment, and mutual funds are no different. Some mutual funds may be more volatile than others, making it necessary to keep track of your mutual fund portfolio to mitigate risks. Assessing and managing risks is crucial in making informed investment decisions and ensuring that your investment portfolios remain healthy and well-cushioned to face any eventualities, including market fluctuation. 

Keeping track of the performance of your mutual fund portfolio is essential to make informed investment decisions.

Here is how you can track your mutual fund portfolio and optimize your investments. 

1. Online Portal of the Mutual Fund Company 

Most mutual fund companies have an online service portal that provides investors with a 360-degree view of their mutual fund portfolio. The portal displays essential details like the total invested amount, current portfolio value, and returns gained so far. 

To access the online portal, you need to create an account by providing a few details like your name, PAN number, KYC details, and email ID. Once you create an account, you can log in and check your portfolio from anywhere, anytime. 

2. Consolidated Account Statement 

A consolidated account statement (CAS) is an account statement that consolidates all your mutual fund investments across multiple mutual fund companies. You can download your CAS from the website 'CAMS' or 'KARVY' by logging in with your PAN number. The CAS includes all your fund transactions and holdings across various mutual fund companies. 

The statement offers a bird's eye view of your mutual fund investments, including details like the total invested amount, current portfolio value, and returns gained so far. It is easy to read and can be downloaded or printed in PDF or Excel format. 

3. Third-Party Apps 

Several apps allow investors to track their mutual fund portfolios. One such app is the Bajaj Finserv App, which provides a comprehensive view of your mutual fund investments. It allows investors to view the portfolio's performance and track the market, making informed investment decisions. Additionally, the app offers personalized investment guidance to app users and allows them to invest in mutual funds seamlessly. 

Here is how you can track your mutual fund portfolio on the Bajaj Finserv App: 

1. Install the Bajaj Finserv App from Google Play or App Store. 

2. Click on the 'Investments' tab on the home screen and select the mutual fund option. 

3. Login to your account, if you have one, or create one by providing the necessary details. 

4. Add your mutual fund details, including the name of the mutual fund, the amount invested, and the date of investment. 

5. Once added, you can view the performance of your mutual fund portfolio in real time. 

6. The app provides you with various investment options that allow personalized investment guidance based on your financial goals and risk profile. 

In conclusion, investors should track their mutual fund portfolio to assess its performance and make informed investment decisions. Tracking your investment portfolio can assist you in identifying poorly performing investments, allowing you to make necessary changes to optimize returns. By utilizing an online portal, a CAS, or a third-party app like the Bajaj Finserv App. Keeping track of your mutual fund portfolio becomes much simpler and hassle-free. Download Bajaj Finserv’s mobile app today and manage your mutual fund portfolio with ease.

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