5 Things to Know Before Buying a Mutual Fund
Bangalore: Many investors are certain of the fact that Mutual funds are the best tools to invest, but the biggest difficulty what they face is while selecting the correct fund, says Uma Shashikant, Managing Director, Centre for Investment Education and Learning. In the present market, there are many funds, which promise various investment methods and strategies. Some are renowned but treacherous whereas some are new, though promising. So to find out the best mutual fund, here are some factors to consider.
1. Annual Turnover
A mutual funds turnover rate exerts the percentage of fund’s holdings that the fund changes every year. A turnover of 100 percent means that the whole portfolio of the fund gets changed every year. Buying and selling stocks will cost money through commissions and thus higher the costs for the fund. So you must look for a lower turnover ratio.
