4 Replies to “What are the parameters I should look for in a good mutual fund?”

  1. A. The most important thing to long term financial success is having the right “Asset Allocation”.

    B. Use Morningstar to help you find good funds….. but;
    Don’t be overly dependent on star system
    Don’t chase last years winners
    Consider (seriously) being a “premium” member… that gives you the depth needed to pick a fund to meet your asset allocation.

    C,. Compare funds to their peers… not to all Mutual Funds (it makes no sense, for example to compare a lage cap growth fund to a small cap value fund).

    Read: Mutal Funds For Dummies

    Stongly consider No Load, Low Fee funds first.

    Spend more time on your “Asset Allocation” than time picking the funds.


  2. When deciding what fund to invest in, you need to consider your investment goals. Are you looking for long-term capital appreciation, or would you prefer to receive immediate income from your investment? You also need to evaluate your risk tolerance. Are you willing to take a chance on a speculative fund to potentially receive a better return, or is capital preservation a high priority?

    If capital preservation is your goal, then you should consider a mutual fund that consists of low risk equities and conservative bond and money market instruments. If you want a mix of investments, then you should look for a balanced fund. If you want explosive capital appreciation, then you should consider a high-risk common stock or high-yielding bond fund.


  3. 1. AMC
    2. Fund objective
    3. Fund Manager
    4. Portfolio allocation
    5. Past performance w.r.t benchmark index & peers.
    6. Annual expenses.


  4. None.. I have not yet been able to find the Information I was looking for when considering to invest my money into these funds. These companies also give you some bull crap prospective that really don’t tells you nothing.





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