A Beginner’s Guide To Using Mutual Funds Tracker Efficiently

A Beginner’s Guide To Using Mutual Funds Tracker Efficiently

Setting investment goals is not the only thing that is important in achieving financial freedom. While investing in mutual funds is a very popular form of investment, it is still just the first step. In order to make the most out of your MF investments, you need to stay on top of them and track them consistently. 

Diversification of your investment portfolio across mutual funds, stocks, and options trading is very crucial. And tracking these investments using a mutual fund tracker is even more important. 

Let’s first understand what a mutual fund tracker is. 

A mutual fund tracker is an investment tool that helps you track how well your investments are performing. It gives you an overview of your investments that includes the following: 

  1. NAV (Net Asset Value): Price of one unit of your investment fund.
  2. Portfolio Composition: What your investment consists of, like stocks, bonds or securities. 
  3. Performance Metrics: How much return will your investment give over different time frames?

There are many trackers that update your investment portfolio daily and in real time. These quick updates allow you to move ahead with your investment options wisely. 

How to use Mutual Funds Tracker efficiently?

Using a mutual fund tracker is no rocket science. Just follow the simple steps mentioned below, and you will be good to go: 

  1. Link your investment tracker: Start tracking your investments and funds by linking your mutual fund portfolio using your PAN number. This helps you save time in syncing your account and tracking your funds. 
  1. Set goals: Use goal-based tracking. Set goals for your investment funds, align them in your mutual funds tracker and then track the investments accordingly. This will help you achieve your goals efficiently and stay up to date with the market trends. 
  1. Track funds allocation: Keep a strict and clear track of how much money you have invested in stocks, option trading,  and mutual funds. Assess their performance and make adjustments accordingly. 
  1. Compare with Nifty 50 benchmarks: The key benchmark to assess your fund’s performance is against the Nifty 50. If your investment fund is consistently performing under this benchmark, then it may be time to review your strategy. 

Why should you use an MF tracker?

There’s no rule set in stone that if you start investing, then you must use a mutual fund tracker. However, it is always advised to do so because it: 

  1. Helps to monitor the performance of your investments against benchmarks such as the Nifty 50. 
  2. Assist in reviewing your funds and make adjustments according to their performance. 
  3. Keep your financial goals aligned with your investments. 

Whether you’re just starting your investment journey, are looking to buy stocks or are a hardcore professional at it, a mutual fund tracker will only help you to optimise your investments more comprehensively and reduce your manpower to a great extent. Consistency is the key to success, and this applies to investments as well. The more updated you are on your investments, the better your financial journey will be in the long run.