Mutual Fund is a pool of resources wherein the contributions made by the investors are invested in different types of asset classes like stocks, debts, money market instruments, commodities and bonds etc. according to their mutual fund investment objective.
Mutual funds issue units to the investors in return for their contributions in proportion to the number of funds they have invested with them. The profit or loss is shared among the investors in proportion to the money they have invested.
Mutual funds help in the diversification of risk as the funds are invested in different types of assets. So, one who doesn’t have knowledge related to different types of assets and how to invest in them can invest in mutual funds as they are managed by professionals.
But if you do have knowledge about the assets and want to invest on your own, then you can select which mutual fund to invest in and track through mutual funds apps.
StockEdge is one such app that helps us in selecting which mutual funds we should invest in according to our investment objectives and helps us in tracking the same. So, in this blog, we will discuss steps that will help you in tracking mutual funds easily.
How to track Mutual Funds using StockEdge App?
StockEdge makes it easy for investors to track their mutual funds. Below are the steps that will help you in tracking how the mutual fund is performing in which you have invested your money:
- Search for a Mutual Fund:
You can search for any mutual fund using the search tab on the Mutual Funds home screen. On the home screen, you will be able to see different tabs related to analytics and explore different AMCs, classes, schemes, fund managers, custodians and so on.
We have taken the example of Sundaram Value Funds as shown below. After you have written the name of the mutual fund you want to know, you will get a screen of the NAV on the screen.
Net Asset Value (NAV) refers to the fund’s market value per unit that is calculated by dividing the total value of all the assets in a portfolio and then deducting all its liabilities.
NAV is calculated at the end of the market day; this is because we need to take into account the closing market prices of the securities in its portfolio. When selecting a mutual fund for investments, we should track how the nav has performed in the past that can be easily analyzed by the nav technical chart as shown below:
- Get Information about Mutual Fund:
When investing in a particular mutual fund we should know the details about the mutual fund in which we have invested in such as the name of the scheme, AMC name, risk rating, market capitalization and so on. These details can be easily tracked on the info tab as shown below:
- Related Schemes:
We should also know about the related schemes of the mutual funds in which we want to invest in. This can be seen in the Related Schemes of that particular mutual fund screen as shown below:
- Performance:
It is important to track the performance of the mutual fund in which we want to invest in. We should analyze the past data and see how the mutual funds have performed in the last years. This can be checked in the performance tab as shown below:
- Holding:
We should also check which assets that particular mutual fund has invested in their funds. This is a crucial step when it comes to selecting the mutual fund for investment. We can see the different assets in which that particular mutual fund has invested in their funds from the Holding tab as shown below:
- AUM:
Assets under management refer to the overall market value of assets/capital which is held by a mutual fund. AUM is an indicator that tells us about the size and success of a given fund house. So when investing in a mutual fund, we should also track the past and current levels of AUM which can be analyzed in the AUM tab as shown below:
- Fund Managers:
Fund managers are the ones who are managing the mutual funds and they are people who are responsible for making mutual funds related decisions like in which asset classes they should invest the investor’s funds. So we should know who is managing the funds of the mutual funds in which we are planning to invest in. This can be checked in the Fund Managers tab as shown below:
- Ratios:
We should also check the ratios like beta, Sharpe ratio, Treynor ratio which tells us how much risk is associated with a particular mutual fund. This can be analyzed in the Ratios tab as shown below:
Bottomline:
Above are some of the main parameters that every investor should check before investing in any mutual fund. StockEdge, as discussed above, makes it easy for all investors to check these parameters of any mutual fund. One should note that we should select our mutual funds based on our investment objectives and goals.
