TOP MUTUAL FUND SECRETS

This special report has certain aspects of mutual funds that the mainstream media won’t tell you.

Here are the key things that you need to know.

• Ensure that the fund you’re buying has a low turnover. High turnover literally means that the fund manager is trading with your money (trust me, you don’t want that).
• Choose the AMC carefully, one that has the track record of managing most of its schemes successfully.
• Ensure that your fund has a Good and Stable fund manager. If the fund manager of your scheme changes frequently, avoid that fund.
• Look for funds with a lower expense ratio (less than 1.25% for direct plans is desirable) Remember, higher the expense ratio, lower the return.
• Ensure that your fund is not a bull market wonder. Check that it has a good long-term track record of market beating performance, even during market crashes. Avoid the temptation to buy only because of recent performance.
• Pay attention to the amount of diversification. Sometimes, fund managers tend to overdo it. Avoid funds with more than 50 stocks in their portfolio.
• Check the track record of the AMC, if the AMC has 20 schemes, and only 2 of those are performing well, ignore that AMC. The 2 funds just got lucky.
• Don’t Buy Regular Plans. They give lesser returns(due to higher commissions) and makes your adviser rich, not you.
• Check the Price to Earnings Ratio of the Scheme. Lower P/E indicates the value investing style that has historically given better returns
• If you’re buying a Small cap fund, (those are highly risky though) you should invest in a fund with the lower AUM. Small cap funds with a larger AUM find it harder to invest in the companies they actually want, due to lack of liquidity in those companies.
• Avoid sector funds and Micro Cap funds. They might offer you slightly better returns in good times but can cause havoc to your portfolio during bad times.
• Don’t hold more than 5 schemes, their underlying holdings may overlap and you don’t get any diversification benefit.
• Don’t blindly trust your Agent. Some Distributors simply recommend you the fund in which they earn the highest Commission.

All the above-mentioned details about a fund can be found on valuereasearchonline.com ! That’s our favorite website to research good mutual fund schemes.

To get the research backed and unbiased mutual fund advise click here