Mutual Fund Portfolio Tracking & Important Metrics

By | February 20, 2018

If you are not interest to invest any mutual funds but you still listen of mutual funds. Then thanks to specially the Mutual Funds Sahi Hai campaign by the Association of Mutual Funds of India (AMFI). And the aim is awareness spreading and educating about the working and the concept of any mutual fund. The Association of Mutual Funds of India raising the investments and ‘How to guides on investing in mutual funds’ which will vigorous and determine campaign with bollywood esque and one amazing part is that it will make the complete sence.

mutual fund

mutual fund

5 Metrics to select Mutual Fund:

Below are the 5 Metrics for selecting the best Mutual Fund which will help you to invest in the right mutual fund.

The performance of Calendar- year:

Maximum mutual funds ranking are based on tracing 3, 5, or 10 ten year returns policy of the Scheme. Because it will gives you the latest update of your performance to the date.  When you chose your investment period then the tracing period could be influence to start upto the ending point. According to the Market conditions you can get the biggest influenced returns when you assessing this Mutual Fund Scheme.

Portfolio churn:

Always use the portfolio turnover data for check that the manager of your Mutual Fund gets call inconsistently right or not. Portfolio turnover will published your mutual fund factsheets, and it also help to calculate the lower part of your stock purchases or sales during separated period through by average assets of your mutual fund scheme.

The turnover of a high portfolio is one type of a sign that the mutual fund has changes its stocks one to another quite often. And less than 50% is a low portfolio turnover, which is a hint that your mutual fund scheme has following a hold and buy strategy or not.

Portfolio valuation:

When you can quiz an Indian mutual fund manager over her styles of investment, mostly he can profess to hunt for growth or value with reasonable amount. But for the philosophy only few stick has been. Portfolio valuation is the best for checking the latest portfolio P/E, and it will also check that if any price of your mutual fund scheme is chest to growth or not.

When portfolio P/E of a mutual fund is much higher then you should know that it is a Sensex or Nifty and it has claimed that it does not lay water because it’s a value investor.

Best or worst:

You can get many measures of statistical risk, which will help to gauge you. And these measures are Sortino ratio, Treynor ratio, and Sharpe ratio. Although the numbers are often from the every common man of Latin and Greek. So always access the data and cannot interpret it. It is an easy way to access a risk profile of your mutual fund and show it will best or worst on its life. And only a right mutual fund will gives your investment skyline is usually long term. It will gives you a very clearly when a bull run was on then how many high returns you can expected and when the markets turn like as a tortoise in which time how many bad things can get.

Suppose as an example Fund no.1 has managed 60% returns policy then it is the best year but Fund no. 1 has to suffer from 50% loss when it is the worst year of this fund. Now Fund no. 2 has managed 30% of return policy then it is the best year for Fund no. 2 but when Fund no. 2 contain losses with 10% then it will suffer from the worst year.

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