How To Review Your MF Portfolio?

Building a mutual fund portfolio is the starting point of a long journey towards achieving your financial well-being. DSIJ explains in detail the importance of reviewing your portfolio and more importantly the specifics you should keep in mind while reviewing your portfolio.

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For most of us, making a mutual fund portfolio is the ultimate goal in our financial plan. We do a lot of research and deliberation before making a portfolio, however, once prepared, we believe our process of a financial plan is complete. Nonetheless, making your portfolio is only the starting point and more arduous job of creating wealth and reaching your goals remains a long journey. Going for a financial plan is more like going for a vacation on your vehicle and hence you should keep a close eye on your dashboard that will help you to reach your destination safely.

Be it your vehicle or your health, everything needs a regular check-up and that is also true for your mutual fund investments. Even if nothing has changed materially about your investments, you still need a check-up at equal intervals. There are two important factors around which you need to review your portfolio. First is the frequency, and second is the factors that need to be reviewed during the regular check-up of your portfolio. You should always set aside some time for regular reviews of your portfolio. A quarterly review is recommended for most investors, followed by a thorough examination once in a year.

Quarterly Portfolio Review

Not many changes in a quarter, but conducting a review of your portfolio every quarter protects you from any surprise when you do your thorough annual final review. The goal of the quarterly check-up is to find out any major changes within your holdings and portfolio overall. In order to keep your quarterly review short and simple, you will need to review items within three key areas of your portfolio.