How to find a fund that will fit your existing portfolio

Choosing the right mutual fund requires an investor to prioritize their objective, rather than the fund’s performance. They should aim for a good mix that aligns with their investment goal and look past the elusive alpha. Investors also need to examine the AMC’s performance, fund managers, and the fund’s past cycles to ensure that it is a good fit in the long term. Diversification is crucial, but over-diversification reduces returns and increases monitoring time. Ultimately, investors should have an honest conversation with their advisor about losses and choose a fund that aligns with their financial goals.