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Mutual Fund Investment performance reports are invaluable tools for mutual fund distributors (MFDs) to evaluate the progress of financial needs and engage in meaningful discussions with clients.
Traditionally speaking, many MFDs find it difficult to create these reports manually, especially the “since inception” performance if the period of holding is long. Things get complicated due to multiple entry, exit, and switch transactions. Thus, to make performance review easy and as accurate as possible, NJ Wealth provides comprehensive performance reports which give a holistic picture of the mutual fund investments considering all related transactions.
Explaining them, Misbah Baxamusa, CEO - NJ Wealth, said that MF performance or XIRR report reflects the entire journey of investors by incorporating details like transaction type (switch in/out, investment/redemption), net investment, current value, realised and unrealized profits, SIPs registered, SIP closed/matured, etc
Currently, NJ Wealth offers a comprehensive Portfolio Review Utility that holistically evaluates the entire mutual fund portfolio of the investor and gives valuable insights. The utility offers a custom selection of the sections to be included in the investor report.
The Portfolio Review Report includes sections starting with the Asset Allocation composition, the Product exposure, the investor level exposure, scheme analysis and rankings and the performance of investments since inception. The utility also covers any financial needs identified by the investors and their progress mapped to the Mutual fund portfolio. Additionally, there is also a section with historical investment patterns or the behaviour of the investor. Collectively, the information and the insights provided by the report is sufficient for a detailed evaluation of the investor’s portfolio and it empowers the distributors to initiate conversations and make appropriate recommendations.
The need for performance reports
Misbah believes that clients’ expectations are increasingly growing in the current competitive scenario. Setting their expectations right while giving them a detailed understanding of their investment journey thus becomes essential.
Through proper performance and portfolio reviews, investors can identify potential roadblocks in achieving their financial objectives and make the necessary corrections and portfolio adjustments to get back on track. It also encourages them to stay committed to fulfilling their financial needs. Regular, fair, and comprehensive reviews go a long way in building trust through which the distributors can positively impact and contribute further to the financial success of their investors.
