Everything about everything

When you have just started investing in mutual funds for a few years, you probably have a very simple portfolio. I know I did. Two or three funds, one of them the obligatory ELSS tax saver, a couple of SIPs - that is about it for most of us initially. There's no 'analysis' needed for such a portfolio. You can just look at the statements you get occasionally, and all the information is right there. Whatever you need to calculate just takes 30 seconds of simple mental arithmetic. However, as time goes by and your portfolio grows, things can get more complicated. You may add more funds from different fund houses to diversify or target specific types of funds. The number of transactions increases as you deploy more money or just stop and start SIPs. Perhaps you redeem parts of some investments because you need the money. Some SIPs get enhanced. All this happens naturally over five to six years, even if you try to keep things simple. Keeping track of performance, returns, asset allocation, and other parameters has become difficult. Mental arithmetic will not suffice, and if you try to eyeball the numbers, you could reach conclusions that are completely wrong. Those adept at Excel or

This article was originally published on February 15, 2024.