Selecting a Mutual Fund is a two-step process – selection of the Mutual Fund category and selection of a scheme in that category.
Select the Mutual Fund category on the basis of the investment objective, time horizon and risk tolerance.
After selecting the Mutual Fund category, choose a Mutual Fund scheme within that category on the basis of its relative performance vs benchmark & its category and consistency of performance. The other important aspect in the scheme selection process is the AMC track record, fund manager’s experience, scheme’s Asset Under Management (AUM) & Expense ratio.
