Hello,
What are the factors to consider while choosing equity mutual funds in India… If you are short of time you can guide me to a resource that tells the most important factors to consider while choosing an equity mutual fund (preferably in the Indian context).
Thanks for your time!
The question should be why equity MF in the first place? Then return expectation, affordability to sit through draw downs, consolidation, even taking loss, not to mention not thinking about other categories/ funds when our funds/categories don’t perform. One can even have an exit plan with MF, depending upon valuations of the markets or any other cues, move from equity to debt or gold. Or one can even invest in multi asset funds.
As with companies, where resignations happen, fund managers too sometimes quit, and there could be some impact, and sometimes as the AUM grows, a fund may find it difficult to find opportunities.
Quantitatively speaking, a fund should have higher upside than its benchmark, and should have lower downside, make more and fall less. You can go qualitatively way too, fund managers give interviews, we can read and get some idea about their views, schools of thought and styles. We cannot have thoughts about the stocks in the fund’s PF, as the responsibility of managing is given to the manager. Some like value, some churn more.
Go to freefincal.com, you can get a lot of information.
We already have existing threads onmutual funds. Post it there. No need for a separate thread.
