Course 301: How to Monitor Your Portfolio, Part 1
Monitoring the Fundamentals of Your Mutual Funds
In this course
1 Introduction
2 Your Monitoring Procedures
3 Monitoring the Characteristics of Your Portfolio
4 Monitoring the Fundamentals of Your Mutual Funds
5 Monitoring Performance

Just as you watch for unexpected changes in your portfolio, watch for changes in your mutual funds, too. You want your funds to meet the same investment criteria today as they did when you first bought them. You set out your investment criteria in your Investment Policy Statement, and you should hold your mutual funds to those criteria. If they no longer meet your criteria, do they still belong in your portfolio?

Just because a fund no longer meets one or two of your criteria is no reason to sell. But if a fund no longer clears most of your hurdles, it is a sell candidate.

For example, perhaps you purchased a fund five years ago to fill a small-growth role in your portfolio.

If today, however, the fund lands squarely in the mid-cap growth slot of the style box, you're investing in a fundamentally different fund than you once were.

Many financial Web sites, such as Morningstar.com,offer alertsto investors signaling key changes to holdings. Morningstar.com's alerts inform investors when, say,a mutual fund changesstar ratings, ormovesinto a new style-box position.

Next: Monitoring Performance >>


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