To evaluate a multi cap mutual fund, an investor needs to look out for certain factors:
- Fund History and Fund performance:
Before investing in any best multicap mutual fund, it’s quite important to look out for the fund history and how it has performed over the years. Apart from that, an investor also needs to look at the reputation of the asset management company. Also ensures that, the fund has gone through all the market cycles of slumps and rally.
An investor must do a check regarding the fund annualised returns before investing in it. An investor must look out for the fund performance over a period of 5 to 10 years. Before investing, one must pick those funds, who have generated returns more than the benchmark index.
Every fund house charges a certain amount of fees annually as part of their expenses on overall returns which is called as Expense ratio. It’s cost always varies depending upon the different fund house. So, any investor before
investing must look out for the expense ratio. Lower the expense ratio, less impact on the returns.
How To Invest in Multicap Mutual Funds with Gulaq?
Investing in best multicap mutual funds is not a bad idea; and with Gulaq the process is simplified with just a few clicks. The investor can filter her requirements in accordance with goals, returns, risks, and horizons. Once sorted, the investor came hop on to Gulaq and start investing. That simple and clean platform
What Are The Key Points To Consider As An Investor?
There are certain key points to consider as an investor before investing.
Before investing in any of the funds, any investor must look out for the objective of the fund whether its high growth or stable returns. This will clearly tell you about the style of investing i.e. Value investing or growth investing.
For any investor, risk assessment plays a crucial role in growing and protecting their investment. Multi cap funds have also faced the risk factor, whereas the rise or fall in the value of the index leads to a sharp increase and decrease in the fund value.
If you are a multi-cap fund investor, then one must prefer a medium- or long-term investment horizon. A longer-term investment horizon will help in reducing the risk and maximizing the returns. Extra time will help enable the fund to realize its full potential.