Mutual Funds: You need to look beyond historical returns; Here’s why

Given the fact that only six out of 192 equity mutual funds gave double-digit five-year systematic investment plan (SIP) returns, it has become important for investors to look beyond the risk and returns parameters before investing in mutual funds. Look at expense ratio, risk adjusted returns and portfolio turnover as these can affect mutual fund investments.An investor must look at the periodic disclosures fund houses provide to analyse these parameters instead of considering only the historical returns of the scheme.

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