5. Do Not Look For Consistency

Don’t always look for the stability of a fund, that is, the fund is always performing the best. If you do a good homework on the history of last 25 years of the mutual fund industry, you can observe that there is no single fund which stayed at the top consistently. This is primarily due to various strategies which work in different manners in the market. The fund might have the best experienced managers of the field, but it can’t assure best consistent performance of the fund, as the market gets twisted due to other factors simultaneously.