HomeMutual FundHow To Use Mutual Fund Tracker For Better Analysis

How To Use Mutual Fund Tracker For Better Analysis

A mutual fund tracker isn’t merely a tool that shows the current value of your investments. A mutual fund tracker’s features include providing information about your asset allocation, portfolio mix, possible returns, etc. Not just this, the analytical reports help you make better investment decisions. Thus, don’t just use the mutual fund tracker to know your current worth of investments.

Explore all the features and benefit of the analytics that the tracker has to offer.

1. To know the current worth of your investments

Once your mutual fund holding is updated, the daily NAV is immediately updated so that you can view the portfolio’s market value at any time. In addition to your equities, ETF, and mutual fund holdings, the majority of portfolio trackers also allow you to track your bond and ULIP investments. Due to the online nature of these portfolio trackers, you can access them from any internet-connected device, or you may download an app to do the same.

2. Assess asset allocation and portfolio composition

Asset allocation refers to the combination of your equity and debt assets. In reality, several mutual fund trackers provide a break-up in exposure to equity and debt. This provides a more accurate depiction of where your risks reside. Additionally, the asset allocation pie chart enables you to see where you are overexposed and where you should take profits. Because of the online mutual fund trackers, the entire procedure of asset reallocation is now automated and system-driven.

3. Recognize changes in the portfolio mix

Using the mutual fund tracker, you can determine your portfolio mix. You can analyze the debt and equity exposure over time. It also indicates when exposure to a specific asset class exceeds a certain threshold due to price appreciation/depreciation. Typically, the portfolio tracker provides you with pie charts or bar charts to help you analyze such portfolio movements. Thus, this mutual fund tracker provides critical information about your portfolio that helps you make better decisions.

4. Keep track of earnings and losses, both actual and hypothetical.

One of the primary functions of the mutual fund tracker is to monitor your portfolio’s gains and losses regularly. Some trackers also estimate potential returns based on your portfolio’s historical volatility. And suggest possible high and low scenarios in terms of returns for your investments. Thus, looking at the possible returns, you may plan your future investments.

5. Monitor the news, analyst reports, earnings, etc.

Online mutual fund trackers also alert you with news and other information that is necessary for your investment planning. You must be informed of the relevant news and opinions when you own mutual funds. You can set up alerts for news flows, dividend, and business activities, analyst reports, upgrades/downgrades, etc. All of this news can be useful for your portfolio, and you can be notified via email. As a result, you can relax and need not worry about monitoring news and other information. How you perceive this information and make investment decisions is what matters.

6. Export and download findings and MIS reports

Lastly, the mutual fund tracker provides MIS reports that you can download. This can be utilized in numerous ways. For instance, if you need to provide your bank with a statement of your mutual fund investments, you may simply export and download the statement from your mutual fund tracker.

In case you plan to hire a financial advisor, you might use these MIS statements as a starting point. Furthermore, for tax filing purposes, you can download a specific MIS of capital gains and losses from the tracker itself.

7. To know about the fees and exit load

The mutual fund tracker will analyze your holding and suggest any potential fees associated with your investments. It also looks into the exit load, if any, for your investments. The ability to liquidate your investments in the most tax-efficient and cost-effective manner will substantially impact your overall profits. In case your redemptions have any exit load, the mutual fund tracker will alert you about it and suggest an alternative exit plan.

8. Mutual fund tracker recommendations

The mutual fund tracker also suggests actionable items that you must consider for your portfolio. Let’s say you have a portfolio with good equity and debt exposure. However, you have no tax-saving investments. The mutual fund tracker will suggest investing in ELSS funds. Such recommendations will assist you in constructing a well-diversified portfolio and ensuring that you can earn good returns.

Ajeet Sharma, the founder of Financegab and a well-known name in the field of financial blogging. Blogging since 2017, he has the expertise and excellent knowledge about personal finance. Financegab is all about personal finance which aims to create awareness among people about personal finance and help them to make smart, well-informed financial decisions.


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