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How you can benchmark your mutual fund portfolio


On this article, we clarify how one can rapidly and simply benchmark your fairness mutual fund portfolio consisting of a number of mutual funds towards an index fund (or ETF). When you observe the steps beneath, you possibly can test the efficiency of your portfolio towards the index at any time.

We will be utilizing the Freefincal MF Portfolio Tracker on Google Sheets to perform this. In one other article, we will clarify the way to benchmark a inventory portfolio. New readers can try the video guides within the above hyperlink earlier than continuing.

Proven beneath is the Screenshot of SIP in Quantum Lengthy Time period Fairness (QLTE) Fund within the tracker dashboard. That is for a SIP within the fund since April 2006. For simplicity, now we have proven just one fund within the portfolio however as much as 30 funds might be benchmarked.

Screenshot of SIP in Quantum Long Term Equity Fund in the tracker dashboard
Screenshot of SIP in Quantum Lengthy Time period Fairness Fund within the tracker dashboard

Duplicate this sheet and name it “Benchmark” or some other title you favor. In case you are invested in fairness and debt mutual funds, then you’ll have to take away the debt transactions earlier than continuing.  In case you have lots of transactions, you possibly can copy them out in a unique sheet and filter out the debt funds by title. Additionally, dividend transactions must be eliminated as they can’t be benchmarked.

Select an index or ETF to benchmark towards. In case your portfolio is older than 1st Jan 2013 then you’ll have to select common plan funds or ETFs because the benchmark. ETF NAV might not be obtainable for all dates from April 2006. This technique will work just for transactions on or after third April 2006.

We will select the UTI Nifty Index fund Common Plan development possibility and use the “Newest NAV” sheet to find its AMFI code (directions can be found within the sheet).

Within the sheet titled “Benchmark”, change the fund title and the AMFI code to that of the benchmark. The XIRR won’t but be computed because the transactions must be mounted.

Screenshot of benchmark mutual funds and it AMFI code in the tracker sheet
Screenshot of benchmark mutual funds and it AMFI code within the tracker sheet

These are the QLTE transactions within the retirement sheet.

Quantum long term equity fund transactions
Quantum long run fairness fund transactions

If you duplicate the retirement sheet to “benchmark”, (1) Change the title of the fund within the first cell after which copy it down. (2) Delete all NAV entries and (3) copy the dates.  Word: In case you have debt mutual fund entires, they are going to must be eliminated at this stage.

Screenshot of benchmark mutual fund transactions in the tracker sheet
Screenshot of benchmark mutual fund transactions within the tracker sheet

Go to the sheet “Discover NAV” and enter the fund title and AMFI Code. This sheet can have entires to search out the NAV for 10 given dates. You may copy down columns A and B to any variety of rows (properly as much as 10,000!) to swimsuit the variety of transactions you may have.

Screenshot of find nav sheet with NAV dates for the benchmark index
Screenshot of discover nav sheet with NAV dates for the benchmark index

Paste the transaction dates from “Benchmark” to Col A of “Discover NAV”. You’re going to get the NAV of the benchmark index for the corresponding dates of your transactions. Copy the related NAV cells and paste the values into Col E (row 41 and beneath) of  “Benchmark”.

Benchmark mutual fund transactions with NAV in the tracker sheet
Benchmark mutual fund transactions with NAV within the tracker sheet

That’s it! Scroll up and take a look at the XIRR. That is the XIRR of the benchmark index for a similar dates and forms of transactions in your portfolio.

Benchmark mutual fund XIRR
Benchmark mutual fund XIRR

So the XIRR for a SIP that’s ongoing since April 2006 is 12.71%. When you had invested the identical quantity within the UTI Nifty Index fund common plan the XIRR can be 11.37%. In fact, for portfolios began after 1st Jan 2013, the comparability might be completed with direct plans.

The above benchmarking course of might be completed in simply quarter-hour even for a brand new person. Transactions made later might be simply added by the identical course of.

To be taught extra in regards to the different options of the mutual fund (and inventory) portfolio tracker, please refer to those video guides. You may get the tracker right here: Monitor your mutual fund and inventory investments with this Google Sheet!

Mutual Fund Portfolio Monitoring

 

Inventory Portfolio Monitoring

 

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