You will see an alert count and a Pending section that shows activities pending with you.
1. This could be investment orders that you placed with need to be paid for (i.e. transfer of funds).\2. Withdrawal orders awaiting your approval. \3. Switch orders awaiting your approval.\4. Email confirmation.\5. OTP confirmation
How do I manage my portfolio with Jama
The dashboard is one place where all your investments are shown with easy access to make additional investments or initiate withdrawals by getting into your individual investments.
You get to see your savings (due to zero commissions, and by preferring debt funds over bank deposits). You also see your latest invested value, gain you are making to date. You can also see gain over last week and last month. Of course there are some graphs to show how your portfolio is moving over a period of time.
What do you mean by savings?
By savings we simply mean the amount you have saved by eliminating mutual fund broker commissions.
Let us say you invested Rs 10,000 in ICICI Prudential Value Discovery fund. This fund over last 3 years (as of 10 Oct 2017) gave a return of 13.28%. However if you had invested through a broker in a Regular Plan, then the return would haven just 11.99%. So Rs 10,000 would have become Rs 14,536 in Direct plans vs Rs 14,046 in the Regular plan. That is a difference of Rs 490 over 3 years.
Seems small, isn't it? However if you extend this to 20 years (assuming similar returns) then the maturity values would be Rs 12,10,779 vs 9,62,908 which is a whopping difference of Rs 24,787! It is almost two and half times of the original investment.
The savings we show will reflect this amount for your investment. The time period assumed is 20 years to bring out the dramatic effect of compounding commissions.
How often is the dashboard updated?
The dashboard is updated every day to reflect the latest NAV (fund value) and recalculate the returns you make. Should you see any issues in updating of the portfolio, please raise a help ticket.
What do you mean by Smart Savings?
A savings bank deposit gives a return of around 4%. A fixed deposit may give slightly higher of say 7% but after taxes that could be 5%. For our calculation we will assume 4%.
We compare this with a debt mutual fund that also gives the benefit of liquidity (withdraw whenever you wish) and safety (we choose funds that invest in reliable bonds with high credit rating). Let us say you invested Rs 10,000 in HDFC Regular Savings Fund which is a short term oriented fund. The 3 year return for this fund was 10.02% as of 10 Oct 2017. Your Rs 10,000 would have matured to Rs 13,108 in 3 years. A bank deposit would have matured to just Rs 10,991 after 3 years, a difference of Rs 2,117!
We are assuming an income tax rate of 20% here. The gain in the debt fund would also get taxed but a much lesser rate, after taking into account inflation. If inflation is 8% then the return would be reduce to 2.02% (10.02% minus 8%). Then this gain would be taxed at 20%. Unlike bank deposit you don't have to pay the tax every year. You pay it only when you withdraw, which means that your money is left undisturbed to compound for a longer time!
How do you calculate gain?
The gain is simply the difference between the amount invested and the latest value of your investments as per latest unit values (NAVs) from the Mutual Funds.
You also get to see the gains made since last week and since last month in the dashboard.
What is 'My Asset Mix'
On your dashboard you will see a simple doughnut graph (ring shaped). This shows the % of your funds in debt funds (green color) and the rest in equity funds. We ignore any gold funds you may hold for this calculation. Also if you hold any balanced funds, we consider 70% of their value as equity.
This graph is important as it shows if you are aligned with your risk profile or not. If your risk profile based recommendation is to hold 30% equity but if you are holding much higher, then you can take corrective action.
Conversely if your recommended allocation is 80% debt but you are holding less then you may be exposed to risks.
The graph is updated daily.
What are the "In Process" alerts?
This shows your orders that are currently being processed. You may also see an Expected allotment date if the date is available from the mutual fund.