4. Change in Investment Style

Measuring performance of an MF through its returns is not the sole index. The investor must also keep monitoring the changes in the MF post top-level modifications. You can keep a few indicators in mind while monitoring this change, like – the inflow and outflow of stocks during period of modification in management and its effect on risk. You can also see if the MF has become too risky for your conservative style. A few other indicators include – increased bend towards mid-caps and distorted allocation of its best 5 stocks. Sumeet Vaid, Founder of Freedom Financial Planners, says that investors should not panic unless there is a vast difference in investment philosophy.