7 steps to select the right mutual fund
Selecting the right Mutual fund is like selecting the right partner; any wrong decision can put you in a spot of bother. As a new investor you may find it even tougher as there are so many funds to invest in.
When we say we need to select the best mutual fund for us, it does not mean the one with the best returns, but the one which suits your goals and the amount of risk you can take. Many investors make the mistake of choosing a mutual fund based on past performance, if a mutual fund has been the best performing one in the last year, it does not mean it will continue to do the same. Some investors only look at the ratings given by various research agencies. This can be one parameter to be looked at, but there are many other parameters that one should look into before investing in a mutual fund.