Smart Tips to Invest in Best Mutual Funds: Lump Sum & SIP Investments

A great strategy to find the best performing mutual funds is to look at both qualitative and quantitative indicators, such as:



1. Scheme Asset Size: Investing in a fund that is neither too big nor too tiny is always a good idea. While there is no clear definition or relationship between fund size and performance, it is argued that a fund that is either too small or too huge can hurt its performance. Fewer Assets under Management (AUM) in any plan are risky because you don't know who the investors are or how much money they have invested in it. As a result, when selecting a fund, choose one with an AUM that is roughly equal to the categories.

2. Fund Performance: Investors should undertake a fair appraisal of the fund's performance over time before investing in the top-performing mutual funds. Also, look for a scheme that continuously outperforms its benchmark over a period of 4-5 years; additionally, look at each period to determine if the fund can outperform the benchmark.

3. Total Expense Ratio: Investors who want to invest in mutual funds must pay specific fees to the Asset Management Company, such as management fees, operation costs, and so on (AMC). Many investors prefer a fund with a lower expense ratio, but this should not take precedence over other essential factors including fund performance.

Mbucks Online Mutual Fund Investment platform provides a complete guide to investing in Mutual Funds in India. To know Top Performing Mutual Funds, Types of Mutual Fund Schemes, Best Mutual Funds to Buy, Plans, features like Performance, NAV, Returns, etc.

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