A wrong decision could result in the loss of your hard-earned savings.

How to Select right Mutual Fund Scheme?

Know your Investment

without a clear objective, one does not have to stop their journey in short

Retirement Planning Child Higher Education Vacation Planning Home Purchase

Fund House Track Record

identity of the fund house’s history of its existence and track records across different schemes before choosing the best scheme.

Where to Look:

Risk Assessment:

Risk-taking capacity of the investor and their understanding of the risks associated with each mutual fund

Where to Look:

Consistency in Fund Performance

Before you select a plan, check how the plan stands up against other schemes based on the stated benchmarks.

Where to Look:

Scheme Size (AUM)

As fund size grows, performance suffers. As small-cap funds grow, their performance suffers proportionally more than that of large-cap funds

Where to Look:

Fund Manager

Fund managers principally make investment decisions when it comes to active funds. It is logical for investors to evaluate the fund’s performance under the current manager.

Where to Look:


Standard Deviation: fund’s volatility Sharp Ratio: how the fund’s performance has been about the risk it has taken it. Beta: how risky your fund is compared to its benchmark index


Taxation of the returns from equity mutual funds depends on the holding period and the appropriate tax rate

Where to Look:

Final Thoughts

The best way to pick the most suitable mutual fund plan for your investment is to consider your objectives, risk profile, and time frame.


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Do not choose mutual funds solely on their performance in the past.