Investing in Mutual Funds can be made easy for the Investor if they are aware and follow the steps of funding carefully. Best Equity Mutual Funds to Invest In require the following needs.
- How much risk of Loses if any, the investor can take, while investing in a company or share.
- Researching the Investment Market.
- Compare same level investments and suggest you which would be better according to your long or short term plans.
- How much time the investor wants to spend his money in the mutual funds
- Short term Investments help in this case as the tax on capital gains are exempted.
- It is important to choose the right broker or investment company that would guide you.
- Quartile performance of mutual fund schemes should be considered to determine if it is a good mutual fund. The four quintile being the Top, upper, lower and bottom, we should ascertain the growth of a fund from Top to Bottom.
- Alpha, is one of the major investment indicator of a mutual fund. It may range from positive to negative according to the growth of the investment. The more positive the Alpha the better.
- Beta measures the Fund’s volatility against the benchmark of the industry. The higher the value of the Beta the greater is the risk.
- Standard Variation of a mutual fund means dispersions of returns from its means. More the Standard Variation more is the growth in the Mutual Fund Scheme.
- Sharpe Ratio measures risk adjustment performance of a scheme. The higher the ratio, the bigger is the risk adjustment performance.
- R Squared of a Mutual Fund refers to the statistical measure of its portfolio against a benchmark ranging from 0 to 100. A fund with R squared index greater than 85 is considered a Best Mutual Fund to buy.
- Expense Ratio of a mutual fund helps ascertain whether it is a Best Mutual Fund to buy or not.
