How to analyse a MF?
I am new to MFs and hence I surf website to analyse MFs, before investing in it. I would like to know - How to analyse a MF?
Different web-sites give different rating [in terms of stars] for funds, there is more and more of data and more and more of ratings. Totally confused with these.
What I look for -
1- Purpose of your investment – Tax saving, investment, any specific target like buying house after 5 years etc.
2- Period – Long term or Short term
3- Past performance – Total return, dividend history, NAV etc.
4- Market capitalization
Don’t ever put all your money in one fund. Diversify.
Also don’t diversify too much with investing in too many funds.
I don’t see any wrong in checking MFs websites ranking like valuresearchonline.com and moneycontrol.com. It is important, how we are interpreting and using those rankings. You need some data, so these websites come handy with the info and the easy to compare.Originally Posted by Dilip
Follow these steps -
Benchmarking – Check performance of your fund with the similar MFs available in the market. And also with the NSE/BSE return.
Stick to the best performing top 5 MFs schemes and exit your non performing MFs periodically (very important, most of us ignore this).
Fund Managers who is managing the MFs and his past performance.
Return will depend on the risk so ask yourself - How much risk am I willing to take?
• Very conservative
• Conservative
• Moderate
• Aggressive
• Very Aggressive
|Jargon Buster|Before you post, please read the FAQ and the sticky posts on the board you wish to use.|Blog|
See attachment for good explaination about MFs. Source - bajajcapital.com
GenNext - The pick you have attached is very small to read. Please post the link.
1.Basic of Mutual Funds -
http://www.valueresearchonline.com/learning/default.asp
2.What To Look for in a Fund? -
http://www.valueresearchonline.com/l...nvest-what.asp
3.How to select fund -
http://www.valueresearchonline.com/f...ctor_quick.asp
Reply With Quote
