February 2019
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MUTUAL FUND Portfolio Management (PMS)t is MUST

Mutual fund Portfolio Management(PMS)

combination of specific mutual funds picked in a specific ratio to meet an investors needs.

Now a days there is a huge curiosity about mutual funds in India. But still there is a huge lack of knowledge and awareness on this subject. Partial Knowledge of various immature Financial advisory turns hazardous for your financial health. So Regular financial health checks are paramount to check your financial health.

Best way for this is Portfolio Management of your existing mutual funds investment. Take help of experienced CFP who will review your portfolio in a specified interval of time and suggest the remedies.Along with this be very specific with your asset allocation on the basis of your risk appetite and investment goals.

Why is the Mutual Fund allocation and portfolio management is important?

 There are 20000+ mutual funds of 43 AMCs  ,and each of them is different from each other. So there has to be a good selection process. Additionally, there is no such thing as one best fund for all investors, or even for any one investor. Different funds have different risk-return characteristics. The right investment strategy for any person is usually a mix and match combination of multiple funds. The art and science of portfolio management maximize the achievable returns given the amount of risk you are willing to take as an investor.

Points to remember while investing in mutual funds-

  1. Please treat your financial health checkup as like as your physical health checkup. Do not Consult with immature financial consultants/advisers , they will destroy your wealth rather to create.
  2. If you don’t have good in depth understanding of Equity and mutual funds, please do not experiment with your money to purchase direct mutual funds.
  3. Do not purchase mutual funds from multiple agents/brokers/banks/Nds for the sack of personal relationship.This will lead your financial health in big trouble. If you already done this mistake than get experienced certified financial planner advice to Balance and manage your mutual fund portfolio. 
  4. Remember  Mutual funds do not represent only Equities.Mutual fund portfolio is mix of different types of Asset class like equity, debts, liquid etc. In simple term, Portfolio is the percentage of total portfolio allocated to each asset class.
  5. MUTUAL FUND PORTFOLIO MANAGER will do your Asset allocation in different funds .It ensure that you will get steady returns in volatile markets also. Please check, if your 100% asset allocated in single asset class i.e.Equity, Hybrid, debt etc than its a red flag on your investment strategy and your advisors intention.
  6. MF Portfolio management based on your Risk Appetite, Investment Horizon,Tax Planning,retirement planning & Goals etc. Remember a fund which gives Excellent returns to one investor

    ,may be wealth destroyer for another investor.

  7. It’s a misconception ,that more funds will diversify your risk. In any case number of funds including all asset class should not be more than 6-8.
  8. you should have your portfolio valuations and performance on your fingertips.For that you can take help of any experienced certified financial planner. A good Portfolio manager can consolidate and balance all your investment at a single place and will check your financial health time to time. Do not leave your hard earned invested money on the mercy of your immature financial adviser or Greedy Banks. Be a Professional Investor rather than a emotional.
  9. Last But not Least- remember you are investing in Mutual fund not in stock market. please do not  check daily your investment values, and give a mature time to a fund to create good wealth.

Mutual fund is not as simple as a immature financial adviser & TV adds shows you. Simultaneously it’s not too much tough that you have to use your  maximum bandwidth to manage your money. You Just need to find one Experienced CERTIFIED FINANCIAL PLANNER.  For managing and balancing your Mutual fund planner for wealth creation .

Happy Investing!!!!

Jay Bhatt

CFP/MF portfolio manager