Mutual funds performance evaluation in india

Do you know how the equity mutual funds perform? How to analyze their performance? You can become an expert investor by yourself. Read this article and you can get more guidance.

Guidelines to measure the performance of Equity Mutual Funds:

First check the profile of the company that has the Asset Management Business. Most of the companies in India like TATA, SBI, HDFC, Axis, Fidelity, Reliance, Templeton and Sundaram etc have good management expertise and they have good expertise team for managing the asset management business. So if these companies launch the schemes, then you can trust them.
Then you should check the profile of the fund manager who takes care of the investments. Some of the companies have group of fund managers who takes joint decisions for investing. But in some companies, they have individual fund managers who take the decision of investing. So you should analyze his past profile, his decision making capabilities, his past record and performance in economic downturns. Once you get good information on the same you can trust them.
You should check the history of the performance of the particular scheme. You should collect the details of the performance in the past 6 months, 1 year, 3 years and 5 years. Then you should compare them with the other similar schemes. You should check whether the schemes have generated returns more consistently than the other schemes. Once you spot the scheme that has generated more consistent returns, then you can invest in that particular scheme.

Next Step: Read more guidelines on investing in equity Mutual Funds: