A smart mutual fund investor doesn’t just invest; they also review, analyse, and adjust their portfolio whenever needed. Your mutual fund statement is the tool that helps you do just that. It includes everything you need to know about your holdings, from purchases and sales to dividends and redemptions.
If you request a statement from a fund house, you will get details of all investments held under its schemes. However, if you have diversified your portfolio across multiple fund houses, obtaining a Consolidated Account Statement (CAS) from a registrar or depository is wise. Think of it as a unified report showing every mutual fund investment you have made across all fund houses.
Know how you can decode your mutual fund statement
You can quickly check your mutual fund statement online using your folio number. After you open it, focus on these major sections to analyse your investment details better.
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Go through personal details
Your statement includes your name, PAN, registered email, mobile number and bank details. Ensure these are accurate, as incorrect information can cause transaction delays or withdrawal issues. Also, check the nominee details. If a nominee is not assigned, your investment could face legal problems if something unexpected happens.
Study investment summary
This section gives you an overview of your mutual fund holdings. The main aspects to consider are:
- Scheme name: Names of mutual fund schemes you have invested in
- Number of units held: Total units you own in the scheme
- Net Asset Value (NAV): Per-unit price of the fund, updated daily
- Present value: Total worth of your holdings based on the latest NAV
- Investment amount: Total money invested in the scheme
You can compare the investment amount with the current value to analyse performance.
Assess transaction summary
The transaction section records all mutual fund activities, including:
- Purchases: Investments made via lump sum payments or SIPs
- Redemptions: Withdrawals or partial exits from mutual funds
- Dividend and payouts: If you have chosen the dividend payout option, this part will display any earnings
- Systematic transactions: Systematic Investment Plans (SIPs), Systematic Withdrawal Plans (SWPs) or Systematic Transfer Plans (STPs) are recorded here
Each entry specifies the date, transaction type, units involved, NAV at the time and the total value. Regularly checking this section helps you track investment progress.
Examine the applicable charges
Be sure to go through the charges, such as:
- Total Expense Ratio (TER): Annual fee for managing and operating a fund
- Exit loads: Apply to premature withdrawals from mutual funds to encourage long-term investing
- Tax Deducted at Source (TDS): Deducted on certain withdrawals as per tax regulations
This information clarifies how much of your earnings contribute to growth versus expenses.
Review current value vs. investment cost
Almost all mutual fund statements outline the following details as well:
- Original cost of investment: The amount you had initially invested scheme-wise
- Present value: The current market worth of your investment
- Gains/losses: The difference between purchase value and current market price
You can compare these figures to see if your portfolio is growing. If returns are persistently low, evaluate whether to hold or withdraw funds.
Key takeaways
Your mutual fund statement acts as a financial report card that tells you where your money is allocated, how your investments perform and what charges are being deducted. By understanding critical elements like folio numbers, NAV, asset allocation and fees, you can better track your portfolio and make calculated decisions.
Investing in mutual funds is a long-term journey; knowledge is your best tool. Hence, stay informed, go through statements routinely and adjust your portfolio when necessary.