How to choose a Mutual Fund
Based on the investment plan, the category of funds should be chosen from debt, equity or hybrid category. Within a category the right scheme can be selected based on criteria such as past performance of the scheme, comparison with peer set and benchmark, volatility measures and risk adjusted performance of the scheme, scheme size, expense ratio of the scheme etc.
There are some vital parameters for choose a Mutual Fund are mentioned below:
CONSISTENCY IS KEY
A good mutual fund scheme is one that consistently manages to outperform its benchmark over 3-5 years. Look for consistency in performance over longer tenures like 3, 5 and 10 years. Select schemes that have consistently beaten their benchmark indices
RISK-RETURN TRADE-OFF
Investments in most securities come with a degree of risk and if returns are not in proportion to the risks taken, it is not worth going for such investments. A good mutual fund is one which gives better returns than others for the same kind of risk taken. Risk-adjusted returns are evaluated against return given by a risk-free instrument- usually government-backed debt papers or term deposits of banks.
PORTFOLIO DIVERSIFICATION
There are some vital parameters for choose a Mutual Fund are mentioned below:
CONSISTENCY IS KEY
A good mutual fund scheme is one that consistently manages to outperform its benchmark over 3-5 years. Look for consistency in performance over longer tenures like 3, 5 and 10 years. Select schemes that have consistently beaten their benchmark indices
RISK-RETURN TRADE-OFF
Investments in most securities come with a degree of risk and if returns are not in proportion to the risks taken, it is not worth going for such investments. A good mutual fund is one which gives better returns than others for the same kind of risk taken. Risk-adjusted returns are evaluated against return given by a risk-free instrument- usually government-backed debt papers or term deposits of banks.
PORTFOLIO DIVERSIFICATION
DON'T JUST JUDGE A FUND BY ITS NAV ONLY
EXPENSE RATIO
Contact us F-304-A, Third floor, Dwarkashish Complex, A-158, Vikas Marg, Shakarpur, Delhi-110092, 011- 49029864, info@aufaitfincare.comFor more information please visit our professional
Good valuable information... Before investing in mutual funds, you should know which are the best funds for you and when you should buy your funds in the beginning stage analysis these things and invest your hard earned money.
ReplyDeletehow to invest in mutual funds
Financial planners in Chennai
Financial advisor in Chennai
Hey, Thanks for sharing this Tips About Financial Planning. I just see your blog and impressed. keep the same alltime. RO Jewels IPO details.
ReplyDelete