How do I choose which mutual fund is good?

Everyone has financial goals that are unique to them and their financial needs. You may want to own a home, a bigger car or fund your child’s education or have a financially protected retirement. Your goals may be a mix of short-term, mid-term and long-term goals. These goals, in turn, determine the amount of savings you need to create and how you need to invest to attain the desired goal amount.
Moreover, with everything becoming more expensive, investment in traditional instruments might not live up to your expectations. This is where investments in Mutual Funds can be beneficial. Whatever your goals might be, there are Mutual Funds to help meet them. The mutual fund basket has something for everyone whether you are a conservative or aggressive investor, have a short-term and long-term goal and have a small or large amount to invest. You can use different kinds of mutual funds with different investment objectives to reach your goals.
Choosing the right Mutual Fund, hence, becomes the first important step in achieving your financial goal.
I have listed some common goals and the most suited mutual fund options to invest in for these goals below. You can choose the best one that suits your needs. Follow this link to get started with Mutual Fund investments on the go- https://www.hdfcsec.com/digify/login?id=lgn

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If you have made a decision to include mutual funds in your investment strategy but don’t know how to get started, it’s actually pretty easy with just a bit of due diligence on your part. You can get halfway there just by understanding your own tolerance for risk and getting clear on your investment objectives. Picking winning mutual funds involves choosing those that provide good returns at a low cost, but funds are even bigger “winners” when they strategically enhance your own portfolio and investing objectives.

Once you’re ready to choose some mutual funds, there are ways to analyze them such as looking at each fund’s past performance history, management team, and expense ratios. You can also entertain different investment strategies that will drive your fund choices, such as diversifying your portfolio with international exposure, buying the market index (S&P 500), or dollar-cost-averaging your money into different funds.

1 Start With Your Goals and Risk Tolerance
2 Pay Attention to the Expense Ratio—It Can Make or Break You!
3 Avoid Mutual Funds With High Turnover Ratios
4 Look for an Experienced, Disciplined Management Team
5 Find a Philosophy That Agrees With Your Own
6 Buy No-Load Mutual Funds
7 Know the Appropriate Benchmark for Your Mutual Funds
8 Work Toward Ample Diversification of Assets
9 The Case for Index Funds
10 Use Dollar Cost Averaging

Follow this link to know more Why do you need to Invest in mutual funds? https://finpeg.com/blog/why-do-you-need-to-invest/

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You should invest or select the Mutual funds as per your risk appetite and the investment horizon you are looking for

I follow this simple technique while I choose my fund…
Firstly to be specific, I have been using the DBS Digibank app for my mutual fund investment and it has been giving me detailed insights about the funds and its progress report right from the start of the fund which actually makes earlier for me to analyze and choose my funds. I finally select them after screening them post reading about these funds reports from various articles on google.

If you are a beginner then I would suggest you try the same method for once as there I no cost involved and only our money which is on our account that we invest.

Hi Bharadwaj

How long time you will be doing this technique. Can you please explain elaborately?. Because I am not aware DBS Digibank app process.

I really agree with you, even I same point of view. The following points must be take care when we have to choose the right mutual fund.

  1. Goals
  2. Risk
  3. Liquidity
  4. Expense Ratio
  5. Entry And Exit Load
  6. Investment Strategy
  7. Fund Performance
  8. Taxes
  9. Direct Plans

With so many categories of mutual funds, fund houses, and schemes available, choosing a mutual fund is not an easy task for many investors. The best way to begin is to decide on a method to narrow down on the right fund for you.

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