A wrong decision could result in the loss of your hard-earned savings.
identity of the fund house’s history of its existence and track records across different schemes before choosing the best scheme.
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Risk-taking capacity of the investor and their understanding of the risks associated with each mutual fund
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Before you select a plan, check how the plan stands up against other schemes based on the stated benchmarks.
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As fund size grows, performance suffers. As small-cap funds grow, their performance suffers proportionally more than that of large-cap funds
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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.
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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
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Final Thoughts
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Do not choose mutual funds solely on their performance in the past.