Mutual funds are a popular investment option for many people looking to grow their wealth. Whether you’re a seasoned investor or just starting out, being able to check your mutual fund account regularly is crucial. It helps you stay informed about the performance of your investments, monitor any changes, and make well – informed decisions. In this article, we’ll explore various ways to check your mutual fund account.
Performance Monitoring
By checking your mutual fund account, you can see how well your investment is performing. This includes looking at the fund’s net asset value (NAV), which is the price per share of the mutual fund. If the NAV has been increasing over time, it means your investment is growing. On the other hand, a declining NAV may indicate that there are issues with the fund, such as poor investment decisions by the fund manager or market downturns.
Tracking Contributions and Withdrawals
You need to keep track of how much money you’ve put into the mutual fund (contributions) and any money you’ve taken out (withdrawals). This helps you manage your cash flow and also ensures that all transactions are accurately recorded. For example, if you notice a withdrawal that you didn’t authorize, you can take immediate action to rectify the situation.
Portfolio Diversification
Checking your account allows you to assess how your mutual fund investment fits into your overall investment portfolio. You can determine if you need to re – balance your portfolio by adding or removing certain mutual funds to achieve better diversification. For instance, if you find that a large portion of your portfolio is concentrated in a single sector through a particular mutual fund, you may want to invest in other funds that focus on different sectors.
Methods to Check Your Mutual Fund Account
Online Portal of the Asset Management Company (AMC)
Most asset management companies that offer mutual funds have an online portal. To access your account, you first need to register on the portal. Usually, you’ll need to provide your personal details such as your name, contact information, and the folio number associated with your mutual fund investment. The folio number is a unique identifier assigned to your investment account.
Once registered, you can create a username and password. Make sure to choose a strong password to protect your account. After logging in, you’ll be able to view all the details related to your mutual fund investment.
Portfolio Holdings: You can see the list of securities (such as stocks, bonds, etc.) that the mutual fund holds. This gives you an idea of the fund’s investment strategy. For example, if you’re invested in an equity – oriented mutual fund, you can see which stocks the fund has invested in.
Transaction History: This section shows all the transactions related to your mutual fund account. It includes details of your purchases, redemptions, dividends received, and any other charges or fees deducted from your account. You can view the date, amount, and type of each transaction.
NAV Updates: The net asset value of the mutual fund is updated regularly on the portal. You can track the daily or periodic changes in the NAV to gauge the performance of your investment.
Mobile Applications
Many AMCs also offer mobile applications for their investors. These apps are available for both Android and iOS devices. You can download the app from the respective app stores (Google Play Store for Android and Apple App Store for iOS).
After downloading, install the app on your device. During the installation process, you may need to grant certain permissions to the app, such as access to your device’s storage or camera (although these are usually for optional features like scanning documents for account – related purposes).
Functionality
The mobile app provides similar functionality to the online portal. You can log in using your existing credentials (if you’ve already registered on the online portal). Through the app, you can quickly check your mutual fund account details on – the – go. For example, you can view your current investment value, the latest NAV, and any alerts or notifications related to your account.
Some apps also offer additional features like push notifications. You can set up notifications for important events such as when the NAV crosses a certain threshold, or when there are any new announcements from the AMC regarding the mutual fund.
Through Your Broker or Financial Advisor
Contacting Your Broker: If you invested in mutual funds through a broker, you can contact them to get information about your mutual fund account. Brokers usually have access to their clients’ investment accounts and can provide details such as the current value of your investment, the performance of the mutual fund over a specific period, and any changes in the fund’s management or investment strategy.
You can reach out to your broker via phone, email, or in – person meeting. When contacting them, make sure to provide your account details (such as your name, folio number, etc.) for easy identification.
Role of a Financial Advisor: A financial advisor can also help you check your mutual fund account. They not only provide information about your investment but also offer professional advice. For example, they can analyze the performance of your mutual fund in the context of your overall financial goals. If they notice that a particular mutual fund is not performing well and is not in line with your long – term goals, they can recommend alternative investment options.
Physical Statements
Receiving Statements: Asset management companies send out physical statements to their investors at regular intervals, usually quarterly or annually. These statements contain detailed information about your mutual fund account. The statement will include your account balance, the number of units you hold, the NAV on the statement date, and a summary of all the transactions that have taken place during the period covered by the statement.
Analyzing Statements: When you receive the physical statement, carefully review it. Check for any discrepancies in the transaction details or the account balance. If you notice any errors, contact the AMC immediately. You can also use the statements to track the long – term performance of your mutual fund investment by comparing statements from different periods.
Understanding the Information on Your Mutual Fund Account
Net Asset Value (NAV): As mentioned earlier, the NAV is the price per share of the mutual fund. It is calculated by dividing the total value of the fund’s assets (minus its liabilities) by the number of outstanding shares. For example, if a mutual fund has assets worth \(100 million and liabilities of \)10 million, and there are 10 million outstanding shares, the NAV is (\(100 – 10) / 10 = \)9. The NAV is an important metric as it reflects the value of your investment in the mutual fund.
Units Held: The number of units you hold in a mutual fund determines your ownership stake in the fund. When you invest in a mutual fund, you are allotted a certain number of units based on the amount of your investment and the NAV at the time of investment. For instance, if you invest \(1000 in a mutual fund with an NAV of \)50, you will be allotted 1000 / 50 = 20 units.
Investment Value: Your investment value is calculated by multiplying the number of units you hold by the current NAV. Using the above example, if the NAV of the mutual fund increases to \(55, the value of your investment will be 20 units * \)55 = $1100.
Troubleshooting When Checking Your Mutual Fund Account
Forgot Password or Login Issues: If you forget your password for the online portal or mobile app, most platforms have a “Forgot Password” option. Click on this option, and you’ll be prompted to enter your registered email address or mobile number. The AMC will then send you a link or a one – time password (OTP) to reset your password.
In case of other login issues, such as problems with your username or issues related to two – factor authentication, contact the customer support of the AMC. They can assist you in resolving the problem.
Discrepancies in Account Information: If you notice any discrepancies in your account information, such as incorrect transaction details or an inaccurate account balance, immediately contact the AMC’s customer service. Provide them with the details of the discrepancy, including the specific transaction or the area of concern. The AMC will investigate the issue and rectify it as soon as possible.
Conclusion
Checking your mutual fund account is an essential part of managing your investments. By using the methods described above, such as online portals, mobile apps, brokers, or physical statements, you can stay updated on the performance and details of your mutual fund investment. Understanding the information presented in your account, like NAV, units held, and investment value, is also crucial for making informed investment decisions. Remember to regularly check your account and address any issues or concerns promptly to ensure the smooth management of your mutual fund investment.
Related Topics:
How Do I Check My Mutual Fund Account
What are the 4 Types of Mutual Funds?
