How to revamp your portfolio this Diwali!

What are the most common signs that an investment is underperforming and should be removed from a portfolio? It's fairly straightforward when it comes to mutual funds. A fund that has not beaten its benchmark over the last three years or a fund managed by a highly reputed manager that hasn't performed well over five years should be reconsidered. I give up on such funds as there are other options available. Also, it's essential to ensure that you're investing in a diversified, low-cost vehicle. Therefore, my first step when I evaluate a fund is to determine whether it has consistently beaten its benchmark over three to five years. Looking at your stock portfolio is more complicated. You have to assess whether it's a great company, if it's growing well, if it's too expensive, or if it just has momentum. Some great companies don't move for years, while some poor companies do. So, you need to make informed decisions here. Value Research could be very helpful with this. Suggested read: Conviction for sale How to decide what to keep in your portfolio? Most of the time, investors get excited by the recent uptick - how their investments have done over the

This article was originally published on November 01, 2024.