A mutual fund is a professionally managed company that collects money from many investors and invests it in securities such as stocks, bonds and short-term debt, equity or bond funds and money market funds.
Mutual funds are a good investment for investors looking to diversify their portfolio. Instead of betting everything on one company or sector, a mutual fund invests in different stocks to try to minimize portfolio risk.
The term is typically used in the US, Canada and India, while similar structures around the world include the SICAV in Europe and the open-ended investment firm in the UK.
Is there a dashboard for mutual fund performance?
When we think about investing, it’s natural to ask how much return we’ll earn. While the answer is simple for fixed deposits and other traditional savings schemes, this is not the case for mutual funds. Conventional savings products offer a guaranteed rate of return that we know. So choosing one of these products to put our savings is an easier decision. But with mutual funds, it can seem complicated with hundreds of schemes to choose from when it’s not humanly possible to be familiar with all of them.
This is where a dashboard of the fund’s performance can come in handy. A dashboard of fund performance is like a report card of all funds. You can see their past performance against their respective benchmarks, latest NAV and daily AUM, all in one place. Such a dashboard can simplify your work from the point of view of performance comparison, but this should not be the only basis for making a choice. Choosing the right fund for your investments requires you to consider many other aspects such as the type of fund, the investment objective of the fund, its level of risk and its suitability for your risk appetite and investment objectives.