Mutual fund investments call for some basic level of financial knowledge and stock market awareness. When you decide to invest in SIP, you need to conduct in-depth research at first. Once you have successfully completed your journey of learning about how to invest in SIP, you’re actually only halfway through.
You can use a SIP Calculator to calculate the returns you would earn on your SIP investments and also tells you how much you would need to invest every month to earn a target corpus.
After investing in your desired SIP mutual fund, it is quite essential to track them from time to time. It’s easy to get confused and overwhelmed with the surplus information about mutual funds available freely on the internet. This holds especially true for new investors who are clueless about where to start.
A regular overview of your mutual fund investment will allow you to determine if your SIP investment has performed as speculated and whether you were able to achieve your financial goals with said investment.
Let’s look at some mandatory public disclosures made by mutual fund houses that offer insight on mutual fund investments:
Daily NAV
NAV stands for Net Asset Value. Every mutual fund house publishes the NAV of all schemes on its website and AMFI’s [Association of Mutual Funds in India] website on a daily basis. To establish the value of the mutual fund investment, you can simply multiply the number of units held with the NAV.
Monthly portfolio
Every month, mutual fund houses are required to publish the portfolio of various schemes. This portfolio consists the list of securities a particular scheme has invested in and the respective weightage. This document is called a fund fact sheet or a fact sheet. These sheets help investors to track their mutual fund investments and remain updated about key data points.
CAS [Consolidated Account Statement]
A CAS is a document that provides an investor the details of his mutual fund investments [SIP statement] in an orderly manner. It contains all information regarding the purchase, sale, and other transactions that take place during a mutual fund’s tenure. An investor can opt for monthly or half-yearly CAS reports.
Key changes to fund
There are times when the key attributes of a mutual fund scheme change. In such situations, an email is usually sent to investors informing them about the same. These changes might have an impact on the scheme’s performance. Hence, it becomes essential to evaluate the scheme.
The Indian capital markets watchdog SEBI [Securities and Exchange Board of India] has made it mandatory for all mutual fund houses to offer an exit option to their investors.
Using mutual fund-tracking websites
You can find a lot about how a mutual fund scheme has fared when you compare them to similar schemes in its peer group. You can find this information on aggregator websites too. You can also upload the investment details and receive a snapshot of the scheme’s performance.
While it is crucial to track your mutual fund investments, it is recommended to consult a fund expert too. An investment advisor could offer you sound advise and simultaneously monitor and review your investments.