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....