Improving Your MF Performance

There are many reasons why despite making some good investments as per your own judgement, the mutual funds that you have invested in may not seem to be generating returns on expected lines. The article takes a deeper look at why a portfolio may turn into a fizzled out affair

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Ramesh Babu, a resident of Hyderabad, is an IT professional and enthusiast investor who keeps on investing in mutual fund schemes based on his own research. He has invested in various funds both as a lump sum as well as through SIP and has been investing for more than five years now. With the boom in the IT sector and better salary and bonuses, he has increased his investment amount since the markets are also generating better results. But he is worried about the performance of his portfolio. He has been watching funds generating returns in double digits but his portfolio has not been reflecting the same returns.

It is especially a few funds that are spoiling the overall performance of his portfolio. The bad part is that these are the funds he was more confident about. As for example, Aditya Birla Sun Life MNC Fund is one of such funds that had an impeccable record of generating superior returns. Ramesh started investing in this fund from March 2017 looking at its strong returns of the previous five years. For the five years ending March 2017, the fund has generated XIRR of 21.17 percent. So, every monthly investment of ₹5,000 started in the month of March 2012 in this fund would have become ₹5,05,845.75 by the end of March 2017. Now, the problem is that every ₹