The Indian mutual fund industry offers are a plethora of options when it comes to mutual fund investments. However, it remains a challenge for retail investors when it comes to narrowing down on that one fund to invest in. Vidya Bala, Head of Mutual Fund Research, FundsIndia in conversation with Jinsy Mathew highlights on what should be the thought process before selecting a fund an what would the best bet during volatile times. Edited Excerpts:
The Indian retail investor is bombarded with a variety of mutual funds. Often there is confusion as to which category one should opt for? Could you guide as to which are the category of funds a medium to long term investor should opt for?
Before choosing funds, investors need to first decide the goal/time frame for which they want to invest and the surplus they can spare on a regular basis for investing. This is necessary to decide the nature of funds needed to build a portfolio. Once this is done, based on the time frame, a combination of equity and debt funds and various categories under the same can be decided.
