SmartSwitch Parameters used to evaluate your Portfolio

Most Important SmartSwitch Parameters

As an aware investor you must know that disciplined and regular investing is a very important part to achieve one’s financial goals by generating good returns on the investments. Without investing in quality mutual funds, the financial growth could saturate beyond a point or even worse could start to decline.

Most investors don’t know whether the funds they have in their mutual fund portfolio are good quality funds or not. They have been diligently investing in those funds in the hope that it will generate returns for them and give them benefits in the long-term. But if the funds are of poor quality even regular & disciplined investing cannot stop from destroying the wealth creation objective.

Classic example of this could be the returns of investment for investors in the current market rally. Surprisingly some investors generated returns over 20% on their portfolio while there were some investors who generated returns of only upto 10%. This is only because of the difference in quality of mutual funds in their portfolio.

Hence timely reviewing & optimising your mutual fund portfolio is important to eliminate the poor quality mutual funds and switch them with quality mutual funds. As continuing to stay invested in them could severely damage the potential to generate the overall returns on your investments.

RankMF SmartSwitch is a unique portfolio anlaysis tool that helps you evaluate your mutual fund portfolio and points out funds that are underperforming or poorly performing. Smartswitch evaluates and reviews the quality of the mutual funds in your portfolio to let you know if any fund requires an upgrade or switching. 

Most Important SmartSwitch Parameters

Here is how simple the process is and would take less than a few minutes to evaluate overall performance of your portfolio.

Step 1: Upload your Consolidated Account Statement (CAS) & check your portfolio score

Step 2: Review the recommendations with well-defined reasons mentioned for each of the funds which is recommended to switch along with how much it will increase your portfolio score.

Step 3: Finally switch to quality funds with ease and upgrade your portfolio while improving the ROI.

You may ask based on what parameters is the mutual fund portfolio evaluated to calculate the quality score?

As soon as you upload your CAS your mutual fund holdings are evaluated and the portfolio score is generated based on:

  • Quality of your equity, debt & hybrid funds in your portfolio

The assessment of the quality of the equity, debt and hybrid mutual fund schemes is based on the RankMF proprietary research and ranking method which rates a mutual fund based on the quality of its underlying portfolio of stocks analysing 20 million fundamental and market data points.

  • Level of diversification in your portfolio

This checks that in how many mutual funds you are invested and those funds invest in how many different stocks. The portfolio score card showcases the total number of stocks you are invested via your mutual funds holding and the possible indication of over diversification of your portfolio which could hamper the return on the investments. 

  • Total expense ratio of your portfolio

This analyses whether you are invested in some expensive mutual funds in terms of Total Expense Ratio(TER) which are eating up your returns potential. In simple terms TER is the total cost you pay to the Asset Management Company(AMC) for managing and operating the mutual funds you have invested. The scorecard shows you the possible reduction & savings in the expense (%) by switching out from such expensive funds and replacing them with good quality funds which have lower the Total Expense Ratio.

SmartSwitch is executed to increase the quality of the funds you hold in your portfolio. Hence to give you the best outcome from the process, SmartSwitch is executed in different levels so that you get the best composition for your mutual fund portfolio.

  • Basic switch happens where poor quality fund switch to better funds in same category
  • Advanced switch happens where poor quality funds move to better funds in a different category but the same asset class.
  • In case you wish to switch the fund in the same category of scheme other than the one’s recommended in the advance switch you can do that also.
  • Good Mutual Fund schemes will not be recommended to switch
  • Following schemes will not be switched – where minimum investment threshold not met and redemption is not allowed.

So we recommend you to evaluate your existing mutual fund portfolio for free and switch all non-performing loss-making funds to better-performing funds using RankMF SmartSwitch and save your mutual funds portfolio from any further damage to your returns.

Open a free investment account with RankMF.com and start your SmartSwitch evaluation process today!

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