How to Monitor Your Mutual Funds
Bangalore: Mutual Funds (MFs) are subject to market risk and the markets are constantly changing. In recent times, quite a lot has happened in the world of MFs. While MF giant Fidelity India has announced to call it quits, relatively newbie L&T Mutual Fund has announced to acquire Fidelity. So, if you are facing troubles with your MF, here are some tips, as given by Sanket Dhanorkar of the ET Bureau –
1. How Long to Monitor Your MFs
Monitoring your MFs is of the utmost importance because they vary quite a bit with changes in the market. While monitoring, do not get carried away with short-term performances. If there has been top-level change in your MF house, then give the new management time to prove itself. MF experts advise investors to monitor the MF for a minimum of 6 months to see where the new management is heading. The quarterly performance of the MF will show its true colours. Also, keep an eye on the fund manager’s business moves in the news.
