If you are done with your investments and facing issues in reviewing your portfolio. Womoneysta is a women’s first financial wellness platform and helps you with investment actions. Investment is not a one-time action. It requires constant attention from the investor. You should review your portfolio every 6 months. Our expert team will introduce you to the simple framework to review your existing mutual fund portfolio effectively.
Step-by-Step Guide To Review Your Mutual Fund Portfolio for financial wellness
Step 1
Collect All Your Mutual Funds Data
If you are working with multiple brokers you must consider consolidating all your data at one place. This may look very difficult but we will tell you two simple ways to manage all the data at one place.
- Log in to CAMS Fintech and download a consolidated account statement from there. If you are a regular SIP investor, check your emails, you will find it in the email as well.
- Log in to MF Central. Log in with your registered mobile number through which you have applied for mutual funds. If you have registered through the same, you can pull out an entire statement from there. You can get all broker data here
Step 2
Analysis of Your Asset Allocation
- Check your asset allocation, check the status of your gold, equity, and debt mixture. If you are a moderate risk taker your 50-60% of exposure should be towards equity which is a high risk asset class. If your exposure is 80%, then it is a red flag, you must consider rebalancing it. We will suggest you to work with a SEBI-registered advisor to get the exact recommendations.
- Break down all your mutual fund categories into gold, hybrid, equity, large cap, mid cap, and small cap. Typically hybrid and gold categories can be considered as moderate risk.
- Your large-cap, flexi-cap, value-oriented funds are considered higher risk. Midcap, small cap, and sectoral are the highest risk. These are alright with the proportion of 10-20%, we advise you to consult with a SEBI-registered advisor. Book your consultation now with the expert for financial wellness.
Step 3
Respective Scheme Performance
Making a standard assumption of 12% as a good return is not the right way to approach this. Check your scheme performances. You must look at the performance compared to its categories, which are average and benchmark performance. Check the data for at least 1, 2 and 5 years if your scheme is consistently underperforming in benchmark and category. It might be time to say bye to this scheme. To check the scheme-wise performance, you can use applications like Money Control and Value Research
Step 4
Rebalance And Consolidate
You must have understood the underperforming schemes. If your equity exposure is more than 80% or the overall mutual fund portfolio has 35 – 40 or more schemes. You need to rebalance it.
Rebalancing means reviewing your equity schemes with much exposure, redeeming, and selling them. Now investing that money in safe debts and gold funds.
Conclusion
Womoneysta is a women’s first financial wellness platform. Offering you with best advice from SEBI-registered experts. Reviewing your portfolio can help you a lot to manage your finances and make good decisions ahead for growth.
FAQ
1. What makes financial wellness important for women?
Ans. Being well financially empowers women with independence, and freedom to live life on their own terms.
2. Who can give the best advice for rebalancing a portfolio?
Ans. SEBI registered experts can give you the best advice for rebalancing. You can consult an expert at womoneysta to get the best advice.
3. How often should I review my portfolio?
Ans. You should review your portfolio every 6-8 months.