Why Do You Need to Compare Mutual Fund Schemes?

Investors are spoilt for choice when it comes to choosing which Mutual Fund to invest in. While the three broad choices of Equity, Debt, and Hybrid Funds seem simple enough, there are currently over 2000 Mutual funds in India that investors can choose to invest in. This is because each of the 3 categories has multiple sub-categories with multiple Fund Houses offering similar funds.

While having options to choose from is definitely a good thing, having too many options can make fund selection quite difficult. Also considering that investing involves a long-term commitment using your hard-earned money, choosing the right Mutual Fund is critical for achieving long-term goals. This is where comparing types of mutual funds can help you select the right schemes to invest in.

Having a clear idea about how to compare mutual funds performance and other features can help investors choose schemes that are in line with their investment goals and help them design an investment portfolio that minimizes overall risk and maximizes returns.