How to keep a track on Mutual Funds?
Law requires that all funds provide two types of documents to current and potential investors free of charge: a prospectus and a shareholder report. Apart from these reports, some magazines, newspapers and other online publications keep publishing investors reviews, financial planners and stock brokers advices. Keep a regular watch on them.
Prospectus or Fund profile
Some mutual funds offer a streamlined version of a fund prospectus called a fund profile. The fund profile contains the answers to key questions to consider before investing in a mutual fund. Once you invest, the fund automatically sends you the prospectus.
Shareholder report:
It includes 2 main information:
i. fund's financial statements and performance;
ii. list of securities the fund held in its portfolio.
It also mention the strategy followed and factors which affected the investment. there are also charts and tables to compare them with their equivalent equity indexes.
Newspapers and Magazines
Financial newspapers and magazines cover major mutual funds and their reports on regular basis. They are good source to know industry trends, expenses ratios, rankings and their profile. Some newspapers also publish daily NAV value.
Websites
Many fund companies have their own websites where they display various comparisons, charts, tables and data in support of their funds. Sometimes these reports and analysis is very helpful. They also provide annualized returns for each fund, their annual reports, profile, prospectus and shareholder reports.
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