Identify goals and risk •This is the first step in selecting t | Finance knowledge Technology

Identify goals and risk
•This is the first step in selecting the best mutual funds. An investor first needs to identify the ultimate goal that he/she is investing for. For eg., whether it is for his/her child's education or marriage etc. Also, he/she needs to assess his/her risk horizon.

Types of need & fund
•Selection of best mutual fund also depends on the time frame of your need. For eg., if you want to invest for a long period of time, a long term capital appreciation fund may be a good choice. If the need is for short period, an income fund could be chosen.

Charges
•Mutual fund companies charge money for their services. So it is very important to understand the fee structure of the mutual fund company that you are planning to take services from.

Know the fund manager
•Fund managers play the most important role in investing in mutual funds. So, it is very critical to know the past performance of the fund manager, what type of mutual fund schemes does he invest in and has he delivered results that were consistent with the market.



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