How to Track Multiple Mutual Fund Investments in One Place

Why Should You Track Multiple Mutual Fund Investments?

When your money is spread across a number of schemes it can be quite difficult to get a clear picture of your overall portfolio if you're having to check each scheme individually.

A consolidated view can help you:

• Monitor portfolio value: You can see what your mutual fund investments are worth at any one time.
• Review returns: You can compare investment performance over various periods, bearing in mind that past performance is no guarantee of future results.
• Check your asset allocation: Make sure you understand how your money is allocated across equities, debt, hybrids and all the other fund types.
• Track SIP contributions: Check your regular investments and spot any missed or discontinued installments.
• Spot overlapping investments : A number of funds will hold the same stocks and/or bonds) as this can lead to concentration rather than genuine diversification.

These checks can help you make your own decisions rather than just going on the performance of individual schemes.

1. Use a Consolidated Portfolio Dashboard

One practical way of tracking a number of Mutual Funds is via a portfolio dashboard which brings the investment information together.

Depending on the platform a dashboard may show scheme names, current values, invested amounts, gains/losses and allocation by category. Some platforms will also provide historical performance charts and transaction details.

Before you go and pick a dashboard, make sure it covers all your mutual fund holdings, that it gets its investment data in some way and that that data is updated on a regular basis.

A consolidated view is of course very useful if you're investing through a number of Fund houses or have a number of SIPs.

2. Review Your Mutual Fund Portfolio Statement

Your Mutual Fund account statements and your consolidated account statements (CAS) can be used to review your holdings across your eligible mutual fund investments.

In India investors can get their consolidated statements via the relevant depositories or the registrar and transfer agent subject to the account and reporting arrangements.

A statement can be used to confirm the schemes you hold, the units you have recorded, your transactions and all the other account information that is available. It's also a good way of periodically checking for any discrepancies that may require your attention.

A statement is a record of your holdings and transactions. A portfolio dashboard may provide some additional analysis. Both can be useful in terms of giving you a clear picture of your position.

3. Track SIPs and Lump-Sum Investments Separately

A Mutual Fund portfolio can contain both SIPs and lump sum investments. It can be helpful to track these separately in order to get a clearer picture of how you've invested over time.

For SIPs you'll need to record the monthly contribution, the instalment date, the scheme and the investment duration. For lump sum investments you'll need to record the purchase date and the amount invested.

This can be of use to you in reviewing your total contributions and in assessing performance over that period. Just be careful not to compare returns without taking into account the different investment dates, cash flows and the method of calculation that has been used.

For SIPs the timing of each instalment will affect both the number of units purchased and the calculation of the overall return.

4. Monitor Returns Beyond a Single Percentage

A portfolio can contain funds with very different objectives, risk profiles and time horizons. Focusing on the Fund which has delivered the best returns may not give you the full picture.

Consider reviewing:

• Absolute returns: The overall return (i.e. gain or loss) on the amount invested.
• Annualised returns: A way of expressing performance over a period of more than one year.
• XIRR: A method used to work out the annualised return when there are investments and withdrawals on different dates.
• Benchmark performance: How a scheme has performed in relation to its relevant benchmark over like periods.
• Risk and consistency: Whether the Fund's volatility and its approach to investing are still appropriate for your own objectives.

There's no single performance metric that tells the whole story. You have to look at the returns in the context of the scheme's objective, its risk and its investment horizon.

5. Check Asset Allocation and Fund Overlap

Holding a number of Mutual Funds doesn't in any way mean your portfolio is diversified.

For instance three Equity Funds could all have substantial exposure to the same large cap companies or sectors. They might be very different funds in name, but their actual holdings could be very similar.

Looking at your asset allocation and common holdings can help you get a sense of where your portfolio is sitting. It also gives you the opportunity to check that your equity and debt allocation still tracks with your own objectives and your level of risk tolerance.

Rebalancing may be worth considering if your allocation has drifted significantly from your intended plan. Any rebalancing would of course need to take into account transaction costs, taxes and potential exit loads.

6. Choose a Tracking Method That Suits You

There are a number of ways of keeping a single consolidated view of your mutual fund investments.

A spreadsheet: It is for the investor who wants to do it the old fashioned way. You can simply record the scheme name, amount invested, units, current value and review date. It obviously has to be kept up to date.

A Mutual Fund tracking app: It helps to bring your holdings together, show you your portfolio performance and provide you with allocation summaries. As with any app of this type you need to check what data it has access to, what its privacy practices are and how frequently it is updated.

An investment platform: Investment platforms will allow you to view your mutual funds as part of your overall portfolio. If you use one of these, make sure it supports the funds you hold and that it provides you with a view of your full portfolio.

Platforms like Ashika Dhanush 2.0 can be looked at to see what investment and portfolio features are available. You'll need to check out what the app is currently capable of to see what mutual fund tracking tools it supports.

How Often Should You Review Your Portfolio?

You don't need to be checking your investments every day. For many Mutual Fund investors with long term portfolios the reality is that a monthly or quarterly review may be quite adequate. It will depend on your individual circumstances of course.

During your review make sure you check your holdings, check your SIP status, compare performance over the relevant time periods and check that your asset allocation is still appropriate. You should also review your investments at any time when your objectives, income or time horizon change.

Don't be tempted to make a frequent change simply because a fund has underperformed over a short period. The decision to switch should be based on the Fund's strategy, its performance over a relevant period and your own individual objectives.

Final Thoughts

Having multiple mutual fund investments tracked in one place can go a long way to making portfolio management more orderly and transparent. A single dashboard, regular account statements and a simple tracking spreadsheet can all be used to keep tabs on your holdings, your returns, your SIPs and your asset allocation.

The objective is not to be on top of every market move or to be chasing the best performing Fund. It's about understanding what you own, how your investments fit together and whether your portfolio is still in line with your own financial objectives.