Most people don’t invest in Mutual Funds merely because they are confused between so many funds that are there in the market and they can never decide which one is the best for them. After reading this article you will get a fair idea about how you should begin your mutual fund research.
Who you should not ask for advice on mutual fund investment?
- Your Bank’s Relationship Manager
- Your stock brokers
- Free advise given online on websites like Quora
- Policy sales agents
Why you should not ask others about where to invest?
Mutual Fund companies give monetary benefit to the people who promote their fund. This benefit could be in the form of commission or in any other form. So, when you ask others, it is possible that they suggest you only the funds that would benefit them more. This way you might end up investing your hard earned money in a wrong fund.
Can we ask our friends or relatives?
It is always good that you compare funds yourself. When you ask your friend or relative, It is possible that they suggest the same Fund that was suggested to them by some broker or agent. However, you may ask your friends or relatives if you trust them and they have good knowledge too. But don’t just ask them the name of the Fund, try to understand the reason behind their suggestion and what all factors they considered while doing their research (if they did any).
Which website to research?
- Daily Statistics
- Historical Trade Statistics
- Closed Ended MF Schemes (Listed) and List of eligible AMC schemes
- MF Tracker
We will discuss each of these on by one, we recommend you practice on the browser side by side:
Historical Trade Statistics
Closed Ended MF Schemes (Listed) And List of eligible AMC schemes
NAME OF COMPANY
DATE OF LISTING
PAID UP VALUE
- Scheme info
- Recent Dividend
- Top Performer
The ‘Scheme Info’ tab shows fund wise NAV, Dividend history, performance report, asset allocation etc. Other most relevant tab here is the ‘Top Performers’ tab. It gives an overview of top performing funds of each category. Best Funds can be further sorted based on their Ranking or Absolute Return or Annualized Return.