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How to choose a mutual fund?

Dhirendra Kumar explains how to narrow down on the right fund that suits your needs

There are many mutual fund companies like SBI, Aditya Birla, Tata, how to make a choice amongst them? Also, after selecting a fund, how can I search about the fund manager and his historical information?
- Jitendra

It is important to choose a suitable fund rather than a fund of a particular company. Even before choosing a right fund, you should first analyse your investment horizon. Different fund categories are suitable for different investment tenure, which can range from some days to a few weeks, months or years. Those investors who haven't invested before, should invest even their long-term money conservatively, and the ones who have seen market highs and lows in the past and no longer become anxious seeing this volatility, can invest in an aggressive manner to earn better returns. Based on this, you should choose a suitable category for yourself.

Now, you should search for a good fund in the category chosen. For getting data on mutual funds, there are a lot of sources. You can check facts on the website of that mutual fund itself where several disclosures are mandated by SEBI which are made by the fifth or seventh of the month. Apart from that, you can visit a website like ours - valueresearchonline, where the information about all the mutual funds, like their performance, are updated daily and holdings data is updated monthly. There you can also find all the details of the fund manager, since when he is managing that fund and also all other funds that he manages.

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