Hey hi,
I use this frame work for my mf Selection:
- Decide risk appetite based on time period of investment and others needs and also what type of fund you are looking for.
- Filter mf which are available in market atleast for a period of 7 plus years if possible i increase this to 10 as this would help us understand how they have performed in bad times as well.
- Then i compare their performance and how many times did the fund beat the relevant index in the selected period and also since inception of the fund.
- Now i filter basis the ratios and standard deviations information that many websites provide and also check the fund manager details and his performance in other funds etc which is a manual and tiring process.
- Now i compare the expense ratio too.
Over and above that once i finalise the funds i read their mutual fund info from the amc website as many times info provided in third party websites are incorrect and then i decide where to invest.
By following the above framework
I found kotak emerging equity fund to be good for a mid (65%) and large cap (35%) fund with 0.3 expense ratio have a good track record of performance in past 10 years and provided a cagr of 21% and out performed the relevant index everytime in the 10 year time frame but as many ppl are coming into mf and mid and small cap fund i doubt any amc will be able to generate similar returns in future.
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