How to Read a Mutual Fund Consolidated Account Statement

This article will guide you through understanding and interpreting your Mutual Fund Consolidated Account Statement, helping you make the most of this valuable resource.

What Is a Mutual Fund Consolidated Account Statement (CAS)?

A Mutual Fund Consolidated Account Statement is a consolidated document issued periodically (monthly or quarterly) by the mutual fund company. It provides a summary of all transactions, including purchases, sales, dividends, and redemptions, across all schemes in which the investor has invested. The CAS simplifies tracking investments, enabling investors to have an overview of their portfolio in one place.

[Read: How to Track All Your Mutual Funds With PAN]

Understanding the Structure of a CAS

A typical Mutual Fund CAS contains several key sections that provide detailed information about the investor's holdings, transactions, and financial status. Here's a breakdown of the typical components found in a CAS:

1. Investor Details

   • Investor's Name: The full name of the account holder.

   • PAN Number: The Permanent Account Number (PAN) is a unique identifier for income tax purposes.

   • Folio Number(s): The number the mutual fund company assigns to the investor's account.

   • Date of Statement: The date on which the statement was generated.

   • Investor Contact Details: Contact information such as address, phone number, and email.

2. Summary of Holdings

   • Scheme Name: The name of each mutual fund scheme in which the investor has an investment.

   • Fund Type: Details of the scheme like equity, debt, hybrid, etc.

   • Units Held: The number of units held in each scheme.

   • Current Value: The current value of these units is based on the latest Net Asset Value (NAV) of the respective fund.

   • % of Holding: The percentage share of the total investment portfolio held in each scheme.

   • ISIN: International Securities Identification Number for the mutual fund scheme.

3. Summary of Transactions

   • Purchase Details: This section provides information about all the purchases made during the period. It includes:

     - Date of Purchase: The date when units were bought.

     - Folio Number: The folio to which the units were added

     - Units Purchased: The number of units bought

     - NAV at Purchase: NAV on the date of purchase

     - Amount Invested: The total amount invested for the purchase

   • Redemption Details: This includes information about all redemptions during the period:

     - Date of Redemption: The date when units were sold

     - Units Redeemed: The number of units sold

     - Redemption Amount: The amount received upon redemption

     - NAV at Redemption: NAV on the date of redemption

     [Read: Redemption of Mutual Funds: Here's How to Go About]

   • Dividend Transactions: All dividends credited during the period are also listed, including the amount and the NAV of the fund on the date of dividend declaration.

   • *This is just for illustration purpose only.
4. Total Portfolio Value

   • Total Investments: The cumulative value of all investments across various schemes.

   • Capital Gains/Losses: The realised and unrealised gains or losses from investments.

   • Total Holdings Value: The overall value of the investor's portfolio considering all the holdings at current NAVs.

   • % of Overall Portfolio: The proportion of each scheme's contribution to the overall portfolio.

5. Fund Performance

   • Benchmark Comparison: The CAS may also include a comparison with the relevant benchmark indices for each scheme, giving an idea of how the mutual fund has performed relative to the market.

   • Performance Over Time: It provides the investor with a snapshot of how their investments have grown over different time periods.

How to Read and Interpret the CAS

Step 1: Understand the Holdings Section

• Review Each Scheme: Start by reviewing the holdings section to understand the different schemes you have invested in. For each scheme, check the number of units, the NAV, and the current value.

• Analyse Performance: Look at the % of holding and consider if any scheme's allocation seems disproportionate to your risk tolerance or investment goals.

• Rebalancing Opportunities: If any scheme represents a significant portion of your portfolio, consider rebalancing your investments by reducing some allocation and investing in others that may better align with your goals or market conditions.

Step 2: Examine the Transactions

• Purchases: Review the purchase details to see if your investment strategy aligns with your financial goals. Large investments at high NAVs might indicate buying at an unfavourable time. On the other hand, investments at lower NAVs could suggest better timing.

• Redemptions: Look at the redemption details to understand why you might have sold units. Frequent redemptions might indicate market timing, which could be detrimental if not done correctly.

• Dividends: Check the dividend transactions for reinvestment opportunities. Reinvested dividends can potentially compound returns over time.

[Read: How to Invest in Mutual Funds Directly]

Step 3: Monitor Capital Gains and Losses

• Realised Gains/Losses: Review any realised gains or losses from redemptions. These are taxable and need to be declared in your income tax filings.

• Unrealised Gains/Losses: Understand the unrealised gains or losses, which indicate potential gains or losses if you were to sell at the current NAV. These could fluctuate with market conditions.

Step 4: Check the Performance

• Comparison with Benchmarks: Compare the performance of each scheme against its benchmark index to assess if the mutual fund is adding value. Schemes consistently outperforming their benchmarks may indicate good management.

• Long-Term Performance: Analyse the performance over longer periods (1 year, 3 years, 5 years) to understand the trend. A consistent outperforming scheme could be a good candidate for your portfolio.

To summarise...

Understanding a Mutual Fund Consolidated Account Statement (CAS) is crucial for any investor who wishes to manage their investments effectively. The CAS provides a holistic view of your portfolio, helping you track your progress, make informed decisions, and optimise your investments based on your financial goals. Regularly monitoring your CAS ensures you stay aligned with your investment strategy and empowers you to take proactive steps to respond to market movements.

We are on Telegram! Join thousands of like-minded investors and our editors right now.

MITALI DHOKE is a Research Analyst at PersonalFN. She is an MBA (Finance) and a post-graduate in commerce (M. Com). She focuses primarily on covering articles around mutual funds including NFOs, financial planning and fixed-income products. Mitali holds an overall experience of 4 years in the financial services industry.
She also actively contributes towards content creation for PersonalFN’s social media platforms in the endeavour to educate investors and enhance their financial knowledge.
 

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing.
This article is for information purposes only and is not meant to influence your investment decisions. It should not be treated as a mutual fund recommendation or advice to make an investment decision in the above-mentioned schemes.