How to Review Your Mutual Fund Portfolio

Most investors make the mistake of checking their portfolio daily or never. The optimal review frequency is quarterly, with a comprehensive annual review. Here's the complete guide.

Quarterly Review Checklist (15 minutes)

• Is total XIRR meeting your target? (Use our XIRR Calculator)
• Are all SIPs running without failed mandates?
• Any major market events affecting your strategy?
• Did any fund undergo manager change or AMC acquisition?

Annual Review Checklist (1 hour)

• Is each fund in top 50% of its category for 3-year returns?
• Check expense ratio — has it increased? Consider switching.
• Has your income changed? Consider Step-Up SIP.
• Do you need to rebalance (too much equity vs debt)?
• Any life changes (marriage, child, home purchase) affecting goal timeline?

When to SWITCH Mutual Funds

Switch if: Fund has been in bottom 25% of category for 3+ consecutive years | Fund manager change with significant strategy shift | Expense ratio significantly increased | AUM fell below ₹500 Crore (liquidity concern).

Don't switch if: Fund underperformed for 1 year (normal volatility) | You feel nervous about market | A friend recommended another fund | Category is temporarily out of favor.

Tax on Switching

Switching mutual funds is treated as redemption + fresh investment for tax purposes. If fund has gains: LTCG (10% after 1 year) applies. Plan switches at financial year end or when LTCG is within ₹1L exemption.

Check your fund returns: XIRR Calculator | MF Returns Calculator

⚠️ This article is for educational purposes only. Not investment advice. Contact: teamsipcalculators.in@gmail.com