In Short: After examining the portfolio, break it down into asset types such as equities, debt, and gold and compare them to appropriate benchmarks. Finally, compare individual funds to both broad (such as the Nifty 50) and specific fund-level benchmarks. Underperformance could be a sign of a purchasing opportunity, while outperformance could point to overvaluation.
The appropriate method for evaluating your mutual fund performance. You should Know Answers of below Prashan
- What is the starting point for monitoring performance?
- How frequently should short and medium-term investors check?
- How can you readily tell if your fund, including sectoral mutual funds, is underperforming its benchmarks?