Fund Manager/House:

• Fund manager should have a consistently good track record.
• Research team of fund house should have enough breadth and experience.

Return Consistency:

• Don’t check the returns as on current date. It might be misleading because of recent performance.
• Check for monthly rolling returns of 3Y, 5Y, 10Y and pick funds which are most consistent.

Relative Performance:

• Compare rolling returns of fund vs benchmark and peers.
• Pick funds which continuously beat benchmarks and are in top quartile among peers.

Expense Ratio:

• Check for expense ratios and compare with peers.
• Check if the fund consistently outperforms the index more than the expense ratio.

Fund Size:

• Fund size should not be too high as it is difficult to deploy big amounts.
• Fund size should not be too low as the risk from redemptions can be devastating.

DISCLAIMER: This blog is solely for educational purposes and not to offer any investment advice. Please do your own research or consult a financial advisor before making any investment decisions.