Mutual Fund Corner: Assessing performance of equity mutual funds

view original post

In the latest episode of Mutual Fund CornerCNBC-TV18’s Sumaira Abidi spoke to Kaustubh Belapurkar, Director-Fund Research at Morningstar Investment Adviser India, about equity mutual funds and how to evaluate their performance.

Belapurkar said, “When you think about performance, that often gets used as the single and the most important decision-making point for any investor, because it is the most easily identifiable. However, if you just purely look at the performance metric, and pick a fund, you may be getting into a fund that is not suitable for you.”

He added, “If you just look at your calendar performance of returns, you will see that winners keep rotating. So the winners of yesterday may not be the winners of tomorrow and that has repeated year in and year out. That is the other thing that investors need to acknowledge that if you just buying purely basis past performance, you might be buying into a fund that has done well recently, could underperform in the near term.”

Watch video for more.

Related Posts