Before investing in any mutual fund, took at these three factors.

  1. Expense ratio. It should be less otherwise mutual fund company will take more percentage in final profit.
  2. Equilty allocatios means shares where that mutual fund will invest your money.
  3. Sectors where those money will be invested.

These things will give you some sense about that mutual fund.

If any mutual fund company is talking about more percentage return then check their last 5 years return, it might be possible they performed badly in some year than the current year, It will give you a sense of confidence.

There are various types of the mutual fund.

  1. Equity Funds
    1. Large Caps or Index fund
      Large cap mutual funds are equity funds that invest primarily in the top 100 companies of India. These companies are some of the biggest brands in our country, and most Indians use their products daily.
      Ideal for goals which are at least 5 years away
    2. Mid Caps
      Mid Cap Mutual Funds are equity funds that invest in the mid-sized companies of India. The companies are some of the fastest-growing companies in India and are at a stage today’s leaders were a few years back.
      Suitable for aggressive investors with 7+ year investment horizon.
    3. Small Caps
      Small Cap equity funds invest in the smallest companies in India. These companies are beyond the top 250 companies and are mostly unheard in our daily lives. While they can deliver fantastic returns, small cap companies are incredibly volatile, and you can see losses in short to medium term.
      Exposure to high risk due to lack of financial strength to withstand tough market conditions
      Ideal for very aggressive investors with a 7+ year investment horizon.
    4. Multi Caps
  2. Debt Funds
  3. Hybrid Funds