I have recently redeemed
two of my mutual funds and started investing them in different
mutual funds of the same category I did this because those 2 Mutual Funds
were not performing good from last 1.5 years What does it mean by mutual
funds were not performing good? Does it mean that they were
not giving me great returns? There is no such definition
of good Returns, Good returns can be of 10%,
20% too, and even 40% And the correction that came in
market in last 1.5 to 2 years and the condition of market hasn't
provided good returns to the investors If your phone's
performance is not good Then it can't only mean that the
battery backup of that phone is not proper Performance can
mean other factors too. If someone's girlfriend
wants to break up with them the reason for breakup can't be that he bought his girlfriend a
normal Pizza instead of cheese Burst. There will be many other factors
due to which the breakup is being done Anyway jokes apart, So even if you want to know which those
Mutual Funds in your portfolio could be which you might
need to switch too. Then today's video
can help you a lot. You only need to
understand this video properly I have tried my best to explain
everything in detail in this video So let's start quickly My name is Ranjan and you
are watching your everyday guide So which is the right way to
review your mutual fund portfolio And how to do it, you
will learn that soon. But before that it is necessary that why you
should review your Mutual Funds portfolio So first thing is very
simple and straight forward That every investor must
do a review of its own portfolio If that investor has
completed one year duration Investing money
in his mutual funds. Then whether you want to
invest your money for 5 or 25 years Because we are talking about the
money you have earned with your hard work So to monitor that
money is important for you And if it has been 1 year since
you are investing in mutual funds I am saying this because we are
not asking you to review stock portfolio We are talking about
reviewing mutual fund portfolio And how is some mutual fund performing
is difficult to get an idea within a year And it's even not right. Judging any
Mutual Funds performance within a year There is no
specific reason for it Some people keep on monitoring their mutual
fund performance in 2 days or within a week That how much return they
are getting from mutual funds It won't help you much,
your patience will drop And your tension will increase I think you should
stop doing that Yes if you want to monitor The
returns you get from your mutual funds Then the day your SIP gets
debit or you do manual investment You can check your mutual
fund returns on that day This is the one thing and to understand
the other thing is very important Many investors think that the mutual fund
in which they have invested their money Is because that is the best
mutual fund, the CAGR of it is great, And that mutual fund has given great
returns to its investors in last 3-4 years Then even I should start my SIP in
this mutual funds and be worry free Because according
to SIP calculator this mutual fund will make
me a millionaire in next 10 years If you think the same then be alert
for sometime and listen this carefully That if any mutual fund has
given great performance in past And it's return has been great That doesn't mean that those mutual fund
will keep on giving great returns in future There is no such kind of
blessing to that Mutual Fund The important thing for you is that time
to time, as I said, minimum once a year Keep reviewing that Mutual Fund To know that your thinking through
which you invested in that Mutual Fund Is something like that
happening with you or not Or you need to change something I had made a video on Mutual
Funds named buy and forget That means you can start
your SIP in this mutual funds And keep on investing your investments
in this mutual funds for a long time The mutual funds I talk about in that
video are not best performing mutual funds But yes they are kind of
all rounder mutual funds Which will keep on giving
you consistent performance In every market scenario The people who want to become rich in
short period didn't like this mutual funds As I saw in some comments I am sure they will be a
millionaire in next 2-3 years May god fullfill their wish. On
the other hand the smart people And know how to keep patience The focus more on consistent
performance rather than best performance So why should we review
our mutual fund portfolio and when should we
do it I have told you that Now let's talk about what is known as
actually reviewing mutual fund portfolio And how we do it So to review our mutual fund
portfolio, first thing is fund performance To know any Mutual Fund's performance First thing we have is Mutual
Fund versus benchmark So every mutual fund
has a benchmark of its own And this benchmark
is actually compulsory Because benchmark is the thing
which is base of any Mutual Fund And the allocation done in any mutual
fund is according to that benchmark Every benchmark has a
performance according to market And multiple Mutual Funds
can follow a particular benchmark But one mutual fund can
have only one benchmark For example if any Mutual
Fund's benchmark is Nifty 100 TRI That means that Mutual Funds
allocate according to large cap Index And it is a surprising that you will
find many such large cap mutual funds Who can't even beat
its own benchmark So how can you check any Mutual Fund's
performance comparing it to its benchmark For that let's go to
moneycontrol.com So I have come here
on moneycontrol.com Here we will search any mutual fund for example I am searching Axis bluechip
and I will choose mutual fund here. And you can see here we
have Axis Blue chip regular plan But we are interested in checking
Axis Blue chip fund direct plan If I click on it I will reach Axis's
Blue chip fund direct plan page And this is not a paid
promotion of Moneycontrol This is an old and
trustworthy website You might get to know a lot
about any mutual fund or stocks So if you want to compare any
mutual fund from its benchmark So you can easily do
that by visiting this website So anyway if I come a
little down by scrolling Then you will see a
graph here like this And on Moneycontrol by
default if you see any scheme Then that scheme is shown by
comparing it with its benchmark So as it's in Axis
Blue chip fund case It's benchmark is S&P BSE 100 TRI That means it follows S&P BSE
100 TRI instead of Nifty 100 TRI So you will see the returns given
by this benchmark in last one year I have selected one year here It has given returns of 16.19% And this fund itself
has given 10.83% return That means this one hasn't beat
its benchmark in the last one year Which means the performance of this fund
is not good according to its benchmark You can check out the
rest of the data on this graph Orange line is of its benchmark
and blue one is of Axis Blue chip fund In the beginning of last year you can see
that blue line is above the orange line That means the performance of Axis Blue
chip fund is good according to its benchmark But later on the blue line is
running below its benchmark That means this mutual fund is
under performing continuously As compared to its benchmark In the same way if I make this
duration of 2 year instead of 1 Then even if we see in
the duration of 2 years So if we see Axis Blue chip fund performance
from here, it's approx march 30, 2022, That means the performance of Axis
Blue chip fund from after March 2022 was consistently very poor
according to benchmark So even in 2 years duration Axis Blue
chip fund has not beat its benchmark Where benchmark has
given returns of 10.49% And returns given by this
scheme there are 4.78% So if I choose any other
mutual fund in comparison of this For example if I want to see any other large
cap fund instead of Axis Blue chip fund That how was its performance
according to its benchmark So you can search any
other mutual fund here I have already
searched here for you So that we don't waste time So if we see SBI Bluechip fund
which is another large cap fun So if we scroll down come
here and check its 1 year return So it's benchmark is
S&P BSE 100 TRI too. That's the reason I
choose this fund here And The returns given by benchmark,
as we saw, was 16.19% in last 1 year And this scheme has
given returns of 20.65% That means this fund has beat
its benchmark with great margin You can see the rest
of the data on this graph The blue line here is running
continuously above the orange line In the last one year that means this
fund has consistently beat it's benchmark If we see the returns of 2 years In 2 years where benchmark
has given 10.49% of returns Where as the returns given by
SBI Bluechip fund is of 11.84% And there is not much
difference in benchmark and scheme's return
in 2 years duration That's the reason you can see in graph Blue
and Orange lines are almost overlapping That is SBI Blue chip fund is
performing almost around its benchmark And later on coming here it's
started beating its benchmark Send the same way you can check
out other Mutual Funds on this website In which you are thinking about
investing or already investing You can compare them
with their benchmarks To know that the scheme
in which you are investing is able to beat its
benchmark or not Because according to this you can judge
any scheme or Mutual Funds performance So it's important for any mutual
fund to beat its benchmark Now the topic comes on checking
funds consistence performance So as I said it's important for any
mutual fund to beat its own benchmark But a scheme is beating
it's benchmark sometimes Or a scheme consistently
beating its benchmark These are two different things. So the second thing is very important
that means you have to check here That in last one or two years that scheme
has beat its benchmark consistently or not So a consistent performance
of any mutual fund matters Even though that mutual fund
doesn't give you high returns So to check any mutual
fund's performance first thing is to compare
that fund with its benchmark Second thing comes as compare the
fund with other funds of same category To understand performance
of any Mutual Fund It is necessary to compare that
mutual fund with its benchmark But only comparing with
benchmark will not work Because many actively
manage Mutual Funds are like The ones which beats
its own benchmark Also notice that the category of
Mutual Fund in which you have invested How was the performance of other
Mutual Funds of the same category in the same duration If there is any other mutual
fund who has performed great Whose returns were great Then you have to see that how
much the AUM is of other Mutual Fund AUM means asset under management That means how much is the
fund size of that Mutual Fund Actually what happens is some
new Mutual Funds come in the market Who's AUM is very less But if you see the returns of
this mutual fund it will be very high That doesn't mean the mutual
fund which has high return is good You even have to check
the AUM of any Mutual Fund Only then you can consider that
mutual fund a good Mutual Fund Because we will call it
and actual comparison So all we talked about
was about fund performance Now let's talk about
mutual fund portfolio overlap Whenever we start investing in
mutual funds it sometime happens That we get some mutual fund
whose performance is going great In that particular year And then we start investing in that
Mutual Fund either through lump sum or SIP For example that can be
two flexicap Mutual Fund It might be that you had already invested
your money in one Flexi cap Mutual Fund But now you have started investing
in another Flexi cap mutual fund too So at the time of your portfolio
review you have to see that which are those Mutual Funds
which belong to the same category And how much portfolio
overlap is there in between them You should check portfolio overlap
before investing in any new Mutual Fund But as I said we sometimes by
mistake invest in such mutual fund But no worries we do mutual
fund portfolio review for this only So that we get to
know about it all If you want to check how much portfolio
overlap is there in between two mutual funds That is how many number
of common stocks are there Then you can use this
tool named thefundoo.com Again this is not a paid promotion I have talked about this
tool in my previous videos If you enter any fund name here for example here I have already
entered Axis equity fund name. I will enter Axis Blue chip
equity fund instead of that So Axis Blue chip G
that means Growth Fund And if we compare SBI
Bluechip Growth Fund with it So if we click on go you
will see that it will calculate And then will show you how much
overlap is there between this 2 schemes You can see other things here but I am
mainly interested in showing you this that How much percentage
portfoli overlap is there here So the portfolio
overlap here is of 51% Which is a huge overlap And the number of common
stocks between them is 21 So if the overlap of any two
mutual funds is above 35 or 40% Then that mutual fund is neither
bad but not too good for you For example if you are already investing
your money in Axis Blue chip fund Then investing in SBI Bluechip fund
with that will not be beneficial for you It would be better to invest in
any one of this instead of both And exit from the other scheme Now let's talk about other
factors of any Mutual Fund So first of all we have
change in fund manager Has there any change in the fund manager
of the schemes in which you are invested If there is a change
then why it has occurred? And what is the experience of the
new fund manager who replaced them. Normally it is very difficult for
mutual fund investor to notice this thing Because no one notice this thing That who was the fund manager of
that mutual fund when you invested in it But in any mutual fund if the
fund manager get replaced it will have a major
effect on its performance Next point is change
in AUM or fund size Is the fund size of this mutual fund
decreasing instead of increasing? If it is decreasing a little
bit than that is no issue But if you see a big noticeable
change then you have to be a bit alert Decrease in fund size means many people
are trying to get out from that Mutual Fund They are trying to
exit that Mutual Fund Due to which it can affect a
lot on the returns you will get Next point is change
in expense ratio Is there any change in the
expense ratio of this fund? If fund is performing great And if its expense ratio is
increased by 0.1 or 0.2% Then it's no big thing Because it's not necessary that if
any Mutual Funds expense ratio is less Then that mutual fund
scheme would be great There are many schemes
whose expense ratio is a bit higher But their performance
is great too. Yes but if fund doesn't perform
and its expense ratio increases It would be same like "It
never rains, but it pours" These were all the points through which
you can review your mutual fund portfolio And can know the performance
of your existing mutual funds I hope I have covered all
the important points here If you think I have missed
some important point then you can inform me
in the comment section If you find this video helpful
then do let me know by liking it And don't forget to
subscribe the channel We will meet soon in the next
video. Thank you for watching