How to Monitor a Mutual Fund

Even though the rising tide of the stock market has lifted a lot of mutual fund "boats," it's still essential to keep an eye on where your particular boat is heading.

Instructions

Difficulty: Moderate

Things You’ll Need:

• Personal Financial Software
• Wall Street Journal
• Financial Calculator
• Brokerage Accounts

1. Look for your mutual fund in your newspaper's business section and check its performance about once a week.
2. Compare your fund's performance with others in its class each month or quarter. If its performance is substandard but its group is doing well, consider switching to another fund in that class by contacting your broker or the fund manager.
3. Check the major stocks in your funds each year to be sure that the fund manager has not shifted the fund's investment emphasis in a direction that throws off your diversification plan.

Tips & Warnings

• If the fund you're in is growing nicely, consider buying more shares.
• Just because you love one fund's performance, don't disturb your allocation balance by buying too much of one fund.