5. High Portfolio Turnover

As an investor it is very important to monitor changes in fund management because of 2 reasons. First – this can lead to a dissimilar style of selecting a stock. Second – top-level management changes can change how a fund manager handles the concerned portfolio. Post changes in top-level management; you might witness a very vast change in your portfolio. Monitor this trend for a couple of months and if it still continues, discontinue with the MF. Also, a stable portfolio does not always equate to high returns. But various changes in your portfolio will adversely affect your returns.