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Investor: Why “learn” reading an account statement? It’s just so simple. It seems simple.

MoneyQuin: Oh! Then you must be reading it every month. Let’s check. O God! Not a single envelope has been opened ever since you started investing.

Investor: Well, I thought I’ll read it later and then somehow I forgot all about it till the next one arrived at my doorstep.

MoneyQuin: So you haven’t read a mutual fund statement ever and yet you are confident there’s no need for you to “learn” how to read one! Ok then let’s do one thing. You teach us to read a statement.

Investor: Alright. Here goes. After opening the envelope, the very first thing I would check is how many units I have now. Then I’ll check the number of units I had at the beginning. Now I’ll check the net asset value (NAV). That’s it then. That’s all I need to be concerned about. How much I invested and how much I am left with now. Also, I’ll check how my fund has performed all this while. Ah! Yes I do check for dividends if I got any.

MoneyQuin: Ok. That’s it. That’s what any investor does. You are no exception. But there are three other very important details you need to check before looking at the performance of the fund.

            Name & Address: To begin with check your name and address. There shouldn’t be         even a minor mistake like a spelling error or the street number or name. Even though     the statement arrived at your address, it may be because the courier man or postman           knew your house very well and overlooked some mistakes in the address. It may be            bad if the delivery guy was to change. 

            Folio Number: Next check the folio number. When you buy a mutual fund scheme         make sure to note down the folio number or save it in your cell phone. Match to see    that the folio number is the same in each statement that you receive.

            PAN: If all this information is correct, they can’t go wrong with the PAN number. But        there are instances of PAN numbers being misprinted. And this is dangerous     because a PAN number as of now is like a unique identification number which when      keyed in displays all important personal information about you. Also, PAN is the most          important aspect of KYC norms.

MoneyQuin: Once you’ve checked these three details, you can go ahead and check the fund performance. You may see how much you’ve gained or lost. If it’s over a year since you’ve invested in the fund, and you seem to be running into constant losses, it’s time to switch schemes.