Finally, it is important to regularly monitor how your chosen investments are performing. Are they making money? Are they bringing your closer to your investment goals? Are your still comfortable with the risk you are taking? Has your financial situation changed significantly enough to warrant a change in strategy? There are some of the important questions you will need to answer to evaluate your investment strategy.
Benchmark. The final checkpoint for evaluating your mutual fund is to compare it to other similar entities. Every single asset class has its corresponding index, which you can use to see how the overall asset class is performing, and then see how your individual mutual fund is holding up against that benchmark. Ofthen when you pull up your mutual funds infoation, a benchmark is already provided for comparison. The question they are answering with the below chart is, if you invested 10,000, how has the benchmark and your mutual fund performed over th same timeframe?
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