how often should I check my unit trust performance?

Checking daily will drive you crazy and make you do dumb stuff. Here’s why + what to actually do:

1. Why checking too often backfires

Equity Funds move like CSE: +2% today, -1.5% tomorrow, +3% next week. 

If you check daily, you’ll see this:

• Monday: +1,200 LKR → “I’m a genius”
• Wednesday: -2,000 LKR → “Sell everything!” 
• Friday: +1,500 LKR → “Why did I panic?”

Result: You sell low, buy high. Exact opposite of making money.

Data point: Investors who check portfolio <4x per year earn ∼2% more annually than those who check weekly. Why? Less emotional trading.

2. How often by fund type

Fund type	Check how often	Why
Money Market Fund	Everey 6-12 months	Moves 0.02% per day. Nothing to see
Income Fund	Every 3-6 months	Slow moves unless interrest rates change
Balanced Fund	Every 3 months	Quarterly statements show real trend
Equity Fund	Every 3-6 months	Daily noise, yearly trend matters

3. What to do instead of daily checking

Monthly: 5 min task

1. Log in, check NAV only
2. Confirm your SIP went through
3. Close the app

Every 6 months: 20 min review

1. Is the fund beating its benchmark? Ex: NDB Growth vs ASPI
2. Has fund manager changed? Google it
3. Still matches your goal? If you need cash in 1 year, move Equity → Money Market

Every 1 year: 1 hour rebalance

1. Did Equity grow to 80% of portfolio when you wanted 60%? Sell some, buy bonds
2. Compare fees. New fund with 1% fee vs your 2.5% fee? Consider switching

4. When you SHOULD check immediately

Only 3 times:

1. Major news: 2022 economic crisis, 50% tax on T-bills, fund manager fraud. You’ll hear it on news anyway.
2. You need money soon: Planning to withdraw in 3 months? Start watching monthly.
3. SIP failed: Bank didn’t auto-debit. Fix it.

5. The psychology trick

Hide the app. Turn off notifications. Treat it like EPF. You don’t check EPF daily right?

Best setup: SIP on auto, check NAV on Jan 1st and July 1st only. Do taxes in April. That’s it.

Bottom line

Checking more ≠ more returns. Market rewards patience, not attention.

Rule: 

• <3 year goal → Money Market Fund → check every 6 months
• 5+ year goal → Equity/Balanced Fund → check every 6 months
• Checking daily → You’ll sell at the worst time

Unit trusts work because of compounding + time. Not because you watched them.