Investing in mutual funds? More cuts in expense ratio may not help you

Retail investors, while investing in mutual funds, should concentrate on three things: 1) Is the scheme they are investing in a long-term performer? That is, has the scheme been consistent over one bear and one bull cycle, at least? 2) What is the mandate for the scheme and does it suit your risk profile? For example, someone may want to sell you a sector fund that is performing well. But if you are investing for the first time, there is no point in buying such schemes because the fortunes of a sector fund can change much faster than that of a well-diversified scheme. 3) Cost of the scheme.

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