How to select the best Mutual Fund Scheme in India?
There are 190 Mutual Fund houses that have over 7000 schemes. This can be very confusing for retail investors. Before investing, we should be aware what are the goals of our investment. The goals can be. Capital Appreciation Retirement Planning Children’s Education Tax Planning One more factor to be aware of is the tenure of Investment. Are you looking for a short-term investment Say 1 to 3 years or a long-term investment (5 years and more). For selecting a Mutual Fund, you should look for these factors: 1. Investment Objective of the Fund: Whether the fund is debt or equity-oriented, large-cap, mid-cap, or small-cap. If it is a diversified fund, then how is the spread. What needs to be noted is that the objective is matching with your own. 2. Type of Fund: a)Open Ended Funds: These are continuously available for repurchase and subscription. b)Close-ended Funds: These funds have a stipulated maturity date. c)Growth Fund: Growth is accumulated, and payments are made only at the end. d)D