Investors, who are looking for best mutual funds 2017 to invest in, must know how to find funds that matches their financial expectations. Below given a few points that every investor should check before buying a mutual fund:
Performance Rank Check of Best Mutual Funds 2017
Always check the long recent as well as long term performance of the scheme. You can easily check performance through the fact sheet provided by the AMCs. These Fact Sheets are also readily made available in mutual fund research websites. Checking the fund performance can help you determine the right rime to exit or buy funds.
Accessing Risk and return ratios is a necessary step to follow. Along with ratio analysis, you must also check out the Fund ALPHA, which would help you gauge the performance of the fund manager.
Total Expense Ratio
If you are looking for some good returns, do check the expense ratio of the mutual fund. This important parameter can help you understand fund’s distribution and management related expenses. High expense ratio, can negatively affect the fund’s returns. Capped by SEBI, lower total expense ratio is considered to be a better sign, unless you are receiving some extraordinary return by forfeiting higher expenses for fund distribution and management.
Scheme Asset Size
Debt and equity schemes have different scheme asset size parameters. Where in equity, the Scheme asset size could be in hundreds of crores; it should be thousands of crores in debt. 90% of the AUM (Total Asset Under Management) is invested in debt, because debt funds have higher Investment value per investor. Lesser the AUM, more the risk.