How often should one monitor Mutual Fund performance?

POSTED BY ganesha ON October 22, 2010 4:21 pm COMMENTS (4)

Monitoring a mutual  fund investment requires a wait period of one year at least so that the exit load is not applicable,So is it enough if we review our mutual fund performance only after one year’s time as weekly monitoring leads to stress for new investors.

Fixed deposits give peace of mind even though they provide negative returns, but not so in the case of mutual funds where the portfolio  sometimes shows heavy loss.

Any recourse to this anxiety?


4 replies on this article “How often should one monitor Mutual Fund performance?”

  1. ganesha says:

    Thank You.

  2. As Prabeesh said , I also am of opinion that maximum time should be spent on the planning part on which mutual funds should one choose and then give atleast 1-1.5 yrs of time to it . a 1-2 quarter review should not judge the fate of the fund , one can reduce the fund exposure , but stopping it is not recommended .

    its like you are shifting from one friend to another because you dont like “some” of their habits .


  3. prabeesh says:

    I beg to differ that a 2 quarter performance should be enough to make a switch..Assume funds like HDFC Top 200,ICICI Discovery,HDFC Prudence will you shift from these funds just because it performed below its benchmark for 2 quarters?

    It should depend on how bad is the returns and the time period of a year to year and half should be given to fund managers to prove their worth.

    It has happened with many top rated funds and they have come out with better and some even best results after that 2 quarter or 3 quarter bad performances.

    Equity oriented funds should be for long term and performance check can be every 6 months,,but you should definitely give some time if it has a good track record.

  4. rakesh says:

    You should monitor your mutual funds every month, however if you see their performance dropping over 2 quarters then it is better to switch to other good performance funds. Exit load is only 1% .
    It is better to sell that fund and switch to other good funds rather than waiting for the time limit to expire.


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.