How & at what freq you will review your MF portfolio

POSTED BY Rajendran ON November 19, 2010 9:57 pm COMMENTS (3)


 I am looking for some views on the following

1)  How frequent you will review your MF portfolio?

2) How will review your portfolio i.e. will you be chucking the fund if it underform its own track index? if so for how long you need compare track index (last 6 month or 1 year or 3 year) ???? or will go by the value research online or morning star ratings (say any fund which is having rating less than 4 will be removed)????


Rajendran. N

3 replies on this article “How & at what freq you will review your MF portfolio”

  1. Ramesh Mangal says:

    Keeping a proper asset allocation is more important than particular funds. I agree with Senthil.

  2. Senthil nathan says:

    1.According to me You Need to check for the Long term Perfomance of Fund atleast for the last 5 years and then buy the Fund.Value research ratings are short term ratings

    There will be a lot of churn in Portfolio if you start managing your portfolio according to Value Research Ratings.Depending upon the route by which you buy the MF you may end up paying commission charges,capital gains tax which may offset any gains that you may derive from churning.Besides this method is very energy intensive as you need to constantly monitor for changes.

    If you use Long term perfomance as the criteria You can review the MF Portfolio every 2 years.

    2.Ideally I will have 3 or 4 Actively managed funds and 2 Index Funds .This way 1.I will get the benefits of higher returns ( returns higher than the index ) if Actively managed fund perfoms better than index.On the other side If Actively managed funds underperforms Index,then Index Fund in Portfolio will maintain the total return of the Portfolio.

  3. rakesh says:

    It is a good practice to review your MF every quarter.
    You can check the funds performance with is past, compare it against its peers or the index. If your fund continues to under-perform for more than 3 quarters then it is advisable to switch over to another fund.
    Value research online ratings are good and you can use them to compare.


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