IndianMoney.com Reviews – How to select mutual fund without Complaints
Mutual fund schemes are often very attractive but how to
choose the right one? Let us go through the details of how to choose the right
scheme in this Indian money company review.
How to choose the
right mutual fund?
1. Pick a mutual fund
based on risk profile
As per Indian Money review,
risk profile is the ability and willingness to bear risk without any complaints. According
to Indian Money company profile
analysis, a conservative investor must consider large-cap funds. They generate
wealth, slowly and steadily over the long term.
These are steady performers which pay
regular dividends. Large-caps have performed very well over the last year,
even as mid-caps and small-caps are going through a severe correction. A
volatile market has forced investors to seek solace in large-cap funds.
Mid-caps and small-caps are for investors
with high risk tolerance. They outperform large-caps in a bull market, but
could crash in a bear market. Small-caps are for investors with high risk
appetite, seeking very high returns.
2. Look at expense
ratio
According to indianmoney.com Bangalore,
total Expense Ratio (TER) is the expenses involved in managing and operating
the fund. Studies have shown that mutual funds with
lower expense ratio generally outperform those with higher expense
ratio.
Large-caps have lower expense ratio
vis-à-vis mid-caps and small-caps, as expenses are spread over a fund of very
large size. Mid-caps and small-caps have a higher expense ratio as they meet
expenses over a smaller asset base.
3. Invest based on
time horizon
Time horizon is the time you can stay
invested in a mutual fund.
Invest in equity mutual
funds for the long-term of at least 5-7 years. Studies
have shown that 10-year returns of small-caps are higher than large-cap funds
over the same period.
According to Indian Money reviews,
small-caps are good performers even over a 5-year period. The trick of making
money in any mutual fund is
staying invested for the long-term. Invest in small-caps over large-caps and
even mid-caps, if you have a time horizon of 10 years or more.
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