How to Monitor Your Mutual Funds
3. Weak Relative Performance
If you are judging the performance of an MF, don’t look at it in isolation. The best thing to do is to compare its quarterly performance with other similar MFs for nearly 6 months. If it’s performing poorly but its contemporaries are doing well, chuck that MF. Rege says, "The first step in comparing performance lies in choosing peers properly within the appropriate category." He gives a few portals to check out MF performance, like – Morningstar and Value Research. These give a monthly and 3-monthly break-up of the performance of an MF and also compare it with others belonging to the same category.
