How to choose funds ?

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Choosing a good fund is never easy ! It just like choosing a good medicine – there are different one for different illness ! You must identify the illness first, and then find the suitable medicine. At Investwise, they do the same ! They created my Goals till next 40 years and then recommended me the Mutual funds according to each of my Goals – in some cases high Risk and in some cases low Risk ! Great show Investwise
Ram Krishna
To begin with, you should identify your goals, investment horizon to achieve them and your risk profile.
Your should go for equity schemes if you have:

  • Long-term goals
  • Investment horizon of five years or more
  • You have high risk appetite

Now that you are qualified to invest in equity mutual funds, you have to go a little deeper and find out exactly how much risk can you tolerate. In other words, are you a conservative, moderate or an aggress

  • If you are moderate investor, you should invest only in large cap and multicap (they are also called diversified equity) schemes.
  • If you are an aggressive investor, you can pick up midcap and smallcap schemes. You can also add sectoral scheme if you have sound knowledge about the sectors.