{"id":3727,"date":"2023-05-17T09:39:40","date_gmt":"2023-05-17T09:39:40","guid":{"rendered":"https:\/\/1finance.co.in\/magazine\/?post_type=blog&p=3727"},"modified":"2025-08-02T14:08:26","modified_gmt":"2025-08-02T08:38:26","slug":"how-do-i-identify-an-unhealthy-mutual-fund-investment","status":"publish","type":"blog","link":"https:\/\/1finance.co.in\/1f-dashboard\/blog\/how-do-i-identify-an-unhealthy-mutual-fund-investment\/","title":{"rendered":"How Do I Identify an Unhealthy Mutual Fund Investment?"},"content":{"rendered":"

Dear Qualified Financial Advisor,<\/span><\/i><\/p>\n

Last year, I started looking for investment options that help with having passive income but don\u2019t involve too much risk. I\u2019m new to this, so I decided to invest in a couple of long-term mutual fund schemes that my friends and family suggested. Now that it\u2019s been some time, I\u2019d like to review the performance of the funds, but I\u2019m not sure about how to tell the difference between good and bad investments. How do I monitor, evaluate and reassess my mutual fund investments in order to make sure I\u2019m on track to grow my wealth and beat inflation? How often should I do this?<\/span><\/i><\/p>\n

My best,<\/span><\/i>
\nA Wealth Seeker<\/span><\/i><\/p>\n

Dear Wealth Seeker,<\/span><\/p>\n

Now that you have bought the tickets, even if it\u2019s based on suggestions by your friends and family, it is advisable to complete your roller-coaster ride. I say this because long-term funds are \u2014\u00a0as the name puts it \u2014\u00a0a long, winding journey. The best way to judge your existing investments would be to check the benchmark of the said schemes, and to look for comparisons with their peers\u2019 performance for the same time frame.<\/span><\/p>\n

If your investment fund has underperformed compared to its peers, but is still beating its benchmark in the long term, you can stay put. On the other hand, if your fund has underperformed both its benchmark and peers, it may be time for a rain check.<\/span><\/p>\n

All said and done, you should be undertaking this evaluation on a yearly basis and not frequently, as volatility is the nature of markets and the same stands true for a long-term equity fund too. Make sure you don\u2019t do this assessment before a year is up (so that it\u2019s not too soon), or later than 30 months \u2014 finding a sweet in-between spot to assess the performance of your investments would be a good strategy.<\/span><\/p>\n

Last but not the least, just like a very good medicine doesn\u2019t cure all ailments, a well-performing scheme may or may not suit your needs or risk appetite. Therefore, it\u2019s always wise to get your portfolio vetted by someone who is qualified so you get an expert opinion and a clear path for your future investments.<\/span><\/p>\n

As I like to say, mutual funds <\/em><\/span>sahi hai<\/span>, <\/span>per<\/span> QFA <\/span>zaruri hai<\/span>!<\/span><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Dear Qualified Financial Advisor, Last year, I started looking for investment options that help with having passive income but don\u2019t involve too much risk. I\u2019m new to this, so I decided to invest in a couple of long-term mutual fund schemes that my friends and family suggested. Now that it\u2019s been some time, I\u2019d like […]<\/p>\n","protected":false},"featured_media":2062,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"_updated_date":""},"blog-category":[],"acf":[],"yoast_head":"\nHow Do I Identify an Unhealthy Mutual Fund Investment?<\/title>\n<meta name=\"description\" content=\"Explore insightful articles on finance, investments, and money management on our blog. 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