Appraising your mutual fund portfolio.

Timely appraisal of our portfolio is as important as investing in good mutual funds. You might review your portfolio once in six months and consider changing your investments if your overall portfolio doesn;t do well.

This is as important as choosing a right fund for investment. See to it that your portfolio has a considerable percentage of debt component as well. This ensures safety and reduces the risk associated with equity investment. You may consider looking at the following before appraising your portfolio.

Age: Early you start investing , the better chances for you to create wealth.

Systematic investment: Invest through SIPs so that you make disciplined investments. Consider investing for atleast 5 to 7 years.

Diversification: How diversified is your portfolio? Is there any debt component as well? Check if you have given considerable portion of your total pie to the debt component. Increase debt component if you are above 40 years of age and reduce exposure to equity.

Do not over diversify as it can fetch you nothing.

Check the performance of your funds over the past 3 to 5 years. consider revising your portfolio if not satisfied with their performance. Invest in funds which performed consistently.