Mutual fund investing requires patience, efforts as well as risk appetite. Besides investing your money in the right securities/assets, mutual funds also offer various other benefits such as diversification and asset allocation, which should be taken into consideration while choosing a scheme.
Choosing the right mutual fund looks easy, but it cannot be done without sticking to some basic criteria. Before investing in any fund, you must first identify your goals for the investment. Identifying a goal is an essential step before scouring the mutual fund universe for the right scheme for you.
Some our Mutual Fund Valuation Services Includes:
1)Creating Investment objective and style :
There’s an objective that every mutual fund, without exception, follows. This objective can help investors determine if investing in that scheme would help her meet the investment objective. As for the style, one can choose from largecap, midcap, smallcap or microcap, multicap and flexicap funds depending on your risk appetite.
2) Formulation of Investment strategy :
As an investor, one should also consider the investment strategy of the fund. Most investors ignore this aspect, but it holds crucial importance in the success of your investment portfolio. It determines the approach that a fund house adopts while taking investment decisions and picking stocks for the scheme. If the investment strategy of the fund house is not in line with your investment goal, then a conflict of interest may arise.
3) Analysis of Fund Performance :
Looking at how the fund manager performed versus its benchmark in the past can indicate whether or not she has a good track record as a stock picker. Investors should review the portfolios of the funds the fund manager oversees and how often she goes for a portfolio churn. This can give the good snapshot of the fund manager’s ability as a stock packer and a good money manager
4) Analysis of Experience of Fund Manager :
5) Calculation of Expense Ratio:
This is what indicates the cost of investing in an equity fund. The higher the expense ratio, the more it will affect the fund performance directly. It comprises brokerage fees and other costs that fund houses charge from investors