How To Pick The Best Mutual Fund


BANGALORE: If you look from an investment point of view, there is no other option as good as investments made in mutual funds. There are some professional fund managers at mutual funds who keep a track of your hard earned money, so that you can sleep in peace even in the most difficult financial times. In India people have the option of investing in more than 5,500 mutual fund schemes among these include 300 in the equity category alone. Within these, the person can choose exposure to different avenues such as debt, equity and gold. That is why finding the right fund is not the easiest of jobs.

Let’s have a look at some of the tips on how to find out the right mutual fund:

1. Investment objective

The main criterion of choosing a fund lies in its objective of investment. Before looking out for funds an investor must look for the fund’s investment objective and match with his own.  For instance there are many mutual funds that seek long-term capital appreciation while others seek growth. Some fund houses invests entirely in equities and some may be in fixed income and money market instruments. Furthermore, while investing in equity, the funds may choose mid-cap, large-cap, small-cap or mixed cap, where they allocate each and every category of funds into the fund’s portfolios. So being an investor you should decide and try to match your investment objective with that of the fund.