Mutual funds provide their latest portfolio position to the general public. It is available on the mutual fund company’s website and other independent websites. From this information, you can determine the percentage of investment made in equities, debts, and others. You will know how many stocks are in the portfolio and the large-cap, small-cap, and mid-cap segments within equities. You can also check the value and percentage of investment made in each stock by the mutual fund scheme.

Importance of this disclosure

Transparency of fund holdings is one area that influences the grading of the mutual fund industry. Indian mutual fund industry is top graded globally, which improves its profile among foreign investors in terms of reliability. Indian funds have one of the shortest lags globally when releasing updated portfolio holdings data. So, Indian SIP investors have faster access to the portfolio data of their mutual funds’ holdings.

Importance for you

Mutual funds are an indirect way of investing in the stock market. The fund manager in various stocks supports the amount you regularly contribute through your SIP account. If you monitor stocks independently, your mutual funds’ list of shares invested can be added to your watchlist.

While you rely on the fund manager’s expertise, it is not advisable to follow a fund manager blindly when it comes to your investments. Neither is it advisable to assume that you cannot override your fund manager’s investment strategy. If you are not satisfied with the assets, you can choose another scheme with a seemingly better portfolio. The importance of knowing your mutual fund’s portfolio is that it gives you better visibility of the assets where your fund is invested.

Importance in trading

Stock picking is one of the easiest and reliable ways of investing in stocks. If you go through the portfolio of successful mutual fund schemes, it is apparent that many of them invest in common stocks. As an independent investor, these are the ideal stocks for stock picking. Although, having a look at the news columns and the stock fundamentals is just as important. But, the thumb rule is that if so many fund managers prefer a particular stock, such stock may be a good buy for an average investor.

Conclusion

Monitoring mutual funds’ investments and tracking their performance is easy with Tata Capital Money App. With your Moneyfy App account, SIP investment is easy as you can keep checking the changes in the mutual funds’ NAV and switch from one scheme to another.