Increased awareness about mutual funds has successfully increased the retail investor participation in the capital markets, bringing in a significant number of fresh investors from all age groups, geographies and income levels. However, with around 1,200 mutual fund schemes, 45 fund houses and 46 fund categories to choose from, selecting an appropriate mutual fund would be a daunting task for most of the fresh investors.
Here I will list a step-by-step approach for fresh investors to help in their fund selection process.
1. Align investments with your financial goals
Aligning your investment with a financial goal helps decide how much to invest and for what time horizon to stay invested in. Setting a time horizon for attaining your financial goals will help…