Our focus at Scripbox has always been how to make otherwise complicated investment decisions and actions really easy for you.
So, we reduce the number of mutual fund options to just what is necessary for specific goals, make investing a single click process, monitor our recommendations on an ongoing basis, suggest portfolio changes based on an annual review and help you change to the new portfolio with a single click!
Over time, you may be left with investments in one or more mutual funds that are no longer part of the Scripbox recommended portfolio; the performance of some funds may decline and/or you may have too many funds with small amounts.
So how do you declutter your portfolio and exit poor performers?
The answer to that question is Scripbox Portfolio Audit. Portfolio Audit is how Scripbox helps you identify funds with poor prospects, exit them while minimising costs, and reinvest the amount you get into the recommended set of funds.
What Portfolio Audit will do for you
1. Review your entire holding of mutual funds, including those outside Scripbox.
2. Help you exit under-performers, and funds with small investments
3. Align your investments to the recommended asset allocation.
We will remind you to run Scripbox Portfolio Audit on your portfolio at least thrice a year – in April, August & December. If our algorithms identify that an action is required in between, we will alert you then as well.
Doing all of this manually can be quite a task, especially when you’re busy. It could take you hours just to put the information together and then take action scheme by scheme. There are also small procedural things like you can’t withdraw less than 50 units or Rs 1000 (did you know that!)
More than meets the eye
Portfolio Audit also incorporates a number of nuances that you may not even be aware of:
1. You allocate the funds appropriately while re-investing so your portfolio gets balanced across the current set of funds.
2. You minimise the gap between withdrawal and reinvestment to minimise the time when your money is not invested.
Doing all of this manually can be quite a task, especially when you’re busy. It could take you hours just to put the information together and then take an action scheme by scheme. There are also small procedural things like you can’t withdraw less than 50 units or Rs 1000 (did you know that!)
Finally, what really happens to the funds that are dropped from the recommended list?
1. We continuously monitor all funds, even the dropped funds and use a proprietary algorithm to rank all funds.
2. The dropped funds which are currently part of your portfolio do not feature as the top 2 funds in the particular asset basket like Large Cap, Mid Cap, etc. but that does not necessarily make them bad funds.
For instance, when a fund is first dropped from our recommendation list we believe you shouldn’t add new money to it, but you need not exit this fund, since there is a cost associated with the exit which could be in the form of exit load, loss or tax on gains.
3. We recommend an exit plan for these funds keeping in mind the exit cost as a proportion of your overall portfolio or bad performance as and when either occurs.