Optimize Your Mutual Fund Portfolio

Investing in Mutual Fund is becoming more popular these days, many people are investing in it just because everyone around them is investing and talking about mutual funds.

So, as a part of herd behavior, people search about mutual funds and invest in them using the different tools that show how much so and so fund delivered and most people often end up having the recent performers in their portfolio.

By continously doing such activity on a regular basis they end up having 10, 20, and in few cases up to 50 funds in a portfolio. I have seen most people with 20-25 funds who come to me for advice on their portfolios and why their portfolio is not performing well.

What are they doing? Are they managing a Mutual Fund Portfolio or cooking a Mix-Veg Dish for dinner?

You are not doing any stamp collection that you go and keep on collecting different types of mutual funds in a portfolio.

You have to follow a strategic way to manage your portfolio with minimum funds in each asset class.

You don’t need to have more than 5 Equity Funds & 2-3 Debt Funds in your Portfolio – this should be the maximum. Try to consolidate your mutual fund portfolio as much as possible and have a consistent performing fund, not a recent performing fund.

Don’t over diversify in the name of Diversification, Mutual Fund itself is a diversification tool you don’t need to diversify what is already diversified.

Don't over diversify in the name of Diversification, Mutual Fund itself is a diversification tool you don't need to diversify what is already diversified. Share on X

Also, most of the investors don’t review their portfolios just because they don’t want to pay exit loads and capital gain taxes. Like seriously? By avoiding loads & taxes they end up staying in a nonperforming fund for years.

Do you know? If your fund is not doing good for a long time now, you are loosing 10x to 100x more, than what you are saving from loads & taxes.

Many investors are not even aware that they don’t have that much capital gains and if they do have that’s within the exemption limit still they have fear of paying taxes.

This needs to be changed. You have to make a list and consolidate your mutual fund portfolio and take action. In this way, you have to track what you owe and how it performs, and what alpha you are generating than the market.

These things need to be tracked and done. If you are not doing this then you are just investing for the sake of investing, not for wealth creation.

Here’s an Action Plan for YOU.

Make a list of funds you have in your portfolio, and schedule an appointment with me using this link gurpreetsaluja.com/meeting – I will help you to consolidate your mutual fund portfolio.

Get the best value from me and improve your financial life.

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