How to choose the best Mutual Fund scheme to invest

To predict the best performing mutual fund every year is a difficult task as in one year, a particular fund could outperform another and the next year another fund could be the winner. Let alone the best performing mutual fund – even the top performing category changes every year! While chasing returns and trying to predict the best mutual fund are uncontrollable factors for investing, what is controllable is that one should select a fund with a long term track record, has a good risk framework and most importantly is aligned to your financial goals. 

When investing in a fund, make sure you follow the thumb rules of right investing process.

1. Make a Financial Plan

2. Understand your cash flows

3.  Understand your risk tolerance

4. Take help of an investment expert and make a financial roadmap

5. Invest through a staggered approach (SIP or Systematic Investment Plan)