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Tool Guide • 8 min read

Portfolio Tracker Complete Guide

Learn how to analyze your mutual fund portfolio, understand risk metrics, identify red flags, and take action to optimize your investments for better returns.

Table of Contents

1. How to Upload Your Portfolio

MFTracker offers three convenient ways to input your portfolio data. Choose the method that works best for you:

Method 1: CSV Upload (Recommended)

Download your portfolio statement from CAMS/Karvy as CSV and upload directly.

Required columns:

fund_name, amount, category, folio_id, amc, expense_ratio

Fast and accurate

Supports bulk data

No manual entry needed

Method 2: Image/PDF Upload (OCR)

Upload a screenshot or PDF of your portfolio statement. Our AI will extract the data.

No formatting required

Works with mobile screenshots

Verify extracted data for accuracy

Method 3: Manual Entry

Add each fund individually using our form. Perfect for small portfolios.

Full control over data

Add one fund at a time

Time-consuming for large portfolios

2. Understanding Key Metrics

Risk Score (0-10 Scale)

Weighted average risk based on your fund allocations. Higher scores mean higher volatility.

0-4: Conservative

Stable returns, low volatility. Suitable for risk-averse investors.

5-7: Moderate

Balanced approach with moderate swings. Good for long-term goals.

8-10: Aggressive

High growth potential but significant volatility. For risk-tolerant investors.

Diversification Score (0-100)

Measures how well-spread your investments are across categories and funds.

40 pts
Category diversity (6+ categories = full points)
40 pts
Balanced allocation (no single fund > 25%)
20 pts
Fund count (8+ funds = full points)

Target: Aim for 70+ score. Scores below 50 indicate concentration risk.

Category Allocation Breakdown

Shows how your investment is distributed across fund categories (Equity, Debt, Hybrid, etc.).

Use this to understand your exposure to different asset classes and market segments.

3. Portfolio Red Flags Explained

Our analyzer automatically detects common portfolio issues. Here's what each red flag means and how to fix it:

High Concentration Risk

Severity: High

Issue: Single fund exceeds 40% of portfolio.

Why it matters: Overexposure to one fund means if it underperforms, your entire portfolio suffers.

Fix:

• Limit any single fund to 20-25% max

• Distribute investments across 6-8 funds

Excessive Small Cap Allocation

Severity: High

Issue: Small Cap funds exceed 25% of portfolio.

Why it matters: Small caps are highly volatile and can drop 40-50% during market corrections.

Fix:

• Keep Small Cap allocation under 20%

• Balance with Large Cap or Index funds

High Expense Ratios

Severity: Medium

Issue: Funds with expense ratio > 2% detected.

Why it matters: High fees erode returns. A 2.5% expense ratio can cost you ₹2.5L on a ₹1Cr portfolio annually.

Fix:

• Direct plans: Target < 1.5% for active funds

• Index funds: Target < 0.5%

• Switch to lower-cost alternatives in same category

AMC Concentration

Severity: Medium

Issue: Single AMC (fund house) accounts for > 40% of portfolio.

Why it matters: Fund house risk - if the AMC faces issues, multiple funds can be affected.

Fix:

• Distribute across 3-4 different AMCs

• No single AMC should exceed 30-35%

4. Portfolio Construction Rules

The Golden Rules

1

Maintain Core-Satellite Strategy

60-70% in core holdings (Index/Large Cap), 30-40% in satellites (Mid/Small Cap)

2

Limit High-Risk Exposure

Small Cap (< 20%) + Thematic/Sector (< 15%) = Max 35% combined

3

Add Stability Buffers

10-15% in Debt/Gold for portfolio stability, especially if risk score > 7

4

Diversify Across Categories

Aim for 6+ categories to reduce concentration risk

5

Optimize Fund Count

6-12 funds is ideal. Too few = concentration risk, too many = overlap & complexity

6

Watch Expense Ratios

Active funds < 1.5%, Index funds < 0.5%. Use direct plans always.

5. Taking Action on Insights

If Risk Score is Too High (> 8)

  • →Add Large Cap or Index funds to reduce volatility
  • →Include 10-15% debt funds for stability
  • →Reduce Small Cap allocation to < 20%

If Diversification Score is Low (< 50)

  • →Add funds from different categories (Flexi Cap, Multi Cap, International)
  • →Reduce allocation to over-concentrated funds
  • →Aim for 6-8 funds across 6+ categories

If Red Flags Detected

  • →Address high-severity flags first (concentration, Small Cap excess)
  • →Use Smart Rebalancer to get specific recommendations
  • →Implement changes gradually over 3-6 months

Ready to Analyze Your Portfolio?

Upload your portfolio now and get instant insights on risk, diversification, and optimization opportunities.

Start Portfolio Analysis