How do you decide to buy an outfit? You would decide in terms of brand, fit, cost, etc. If selecting an outfit takes so much effort, how much more effort should one put in when it is a question of our investments? It is essential that you monitor your investments in such a way that it leads to take informed decisions.
Let’s understand the parameters to assess when investing in mutual funds in India.
Risk profile: The first step is to know yourself, understand your risk https://rik88.bet/
https://1go88.vip/appetite, how you intend achieving your financial goals and then decide your investment. Keep in mind that income from mutual fund returns in India are taxable in the hands of the investor.
If you prefer diversified investment you may consider to invest in a hybrid fund. If you are looking for short term investment, you can consider to invest in a debt fund. However, if you aim at building your wealth over long term and are willing to take risks, you can consider to invest in equities.
Mutual fund Returns Comparison:
Past performance is no guarantee to future mutual fund returns; however, do evaluate the performance of a mutual fund on consistency parameters to determine the type of fund.
You can evaluate the performance of a mutual fund against its benchmark via the fund factsheet.
Studying the fund’s quartile ranking is also useful to find a scheme.
For mutual funds returns comparison; funds with the highest mutual fund returns in the particular period are placed in the top quartile, whereas the lowest mutual fund returns are placed in the bottom quartile. If a fund has figured in the top quartile for 4-6 quarters consistently it means that the fund is outperforming its peers.