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How often should I monitor my Mutual Fund portfolio

I have two questions with regards to my mutual fund portfolio. My investment is through SIP's. 1) How often should I be monitoring my portfolio? 2) What should be my plan of action if one (or more) funds are not doing as well as its peers (or the index) for a sizeable duration of time, say 1 year or more? Should I be temporarily stopping the SIP on this fund? Should I be exiting and no longer investing? Should I be investing more? It is easy to assume that the fund performance would be consistent all through the years; if that is the case – well and good; If that is not the case (or there is a drop in the performance of one of the finds for a long duration), what should be the plan of action?

Oct 26, 2016 by Manu, Bangalore  |   Mutual Fund

Though you have two questions, I am trying to answer them in one.

First, if you have selected funds carefully while starting the investment, then you need not monitor it every now and then. Having said that, you should monitor and review your mutual fund portfolio at least once every year. Why, please read this https://www.advisorkhoj.com/company/Peerless-Mutual-Fund...

Secondly, if the funds are not performing well despite careful selection, while starting the investment, do stop the SIPs in them and start SIPs with new funds. Please also note that if the fund is not performing well then investing additional amount in them makes no sense. Rather, you should withdraw the amount and put the same in the new fund where you have decided to start the new SIP.

Please also note that you should be very careful in reviewing the fund selection and should not be biased with recent performance. While reviewing the fund you must look at the consistency in the return, compare the return with peer group funds and benchmark of the fund. Rolling return is another yardstick which you should use while reviewing the fund performance. Please check this https://www.advisorkhoj.com/mutual-funds...

Hope the above helps. Thanks for writing to us.

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