Financial Education
How to Track Your Mutual Fund Performance
By Vikas GuptaPublished Updated
Quick answer
Track mutual funds using XIRR for your actual return, compare each fund with its benchmark and category over 3 to 5 years, and get a consolidated statement of all your holdings. Check once or twice a year, and judge results against your goal.
Looking at your total gain is not enough, since it ignores time. Here is how to measure progress properly without obsessing over it.
Which number should I look at?
- XIRR: your true yearly return when money goes in on many dates, as it does with a SIP. Use this for your own portfolio.
- CAGR: the yearly growth rate for a single lump sum. Try the CAGR Calculator.
- Absolute return: total percentage gain. Useful only over short periods.
What do I compare my fund against?
| Check | What to look for |
|---|---|
| Benchmark (TRI) | Is it ahead of its index over 3 to 5 years? |
| Category average | Is it consistently in the better half? |
| Rolling returns | Is performance steady rather than one lucky year? |
| Falls | Did it lose less, or recover faster, than peers? |
How do I see everything in one place?
Request a Consolidated Account Statement (CAS). You can get one from the registrars CAMS and KFintech, from MF Central, or from your depository if you hold funds in demat. It shows all your folios across fund houses.
How often should I check?
Once or twice a year is enough for most people. Daily checking mainly creates stress. Rebalance during that review if your mix has drifted.
When should I replace a fund?
Consider it if a fund has lagged its benchmark and peers for two to three years, has changed its manager or style, or no longer suits your goal. One bad year is not a reason to sell. Remember that switching may trigger tax and exit loads.
Finally, ask the question that matters most: are you on track for the goal? A good return that still leaves you short means you need a higher SIP, not a different fund. Check with the SIP Need Calculator.
Frequently asked questions
What is a good XIRR for a mutual fund?
There is no fixed number, because it depends on the type of fund and the market period. Compare it with the fund’s benchmark and with the return your goal requires.
Why is my SIP showing a loss?
Early in a SIP, or during a market fall, your average cost can sit above the current NAV. If your goal is still years away, a temporary loss is normal and those cheaper instalments may help later.
Keep reading
Mutual fund investments are subject to market risks, read all scheme related documents carefully. Mutual fund distribution by Korlipara Vikas Gupta, AMFI-registered Mutual Fund Distributor, ARN-178652. Distributors earn commission from fund houses on regular plans. Content and calculators on this site are for education, not personalised investment advice. Illustrations use assumed returns, which are not guaranteed.