AArtheek
LoginOpen Account
Fund SelectionIntermediate11 min

How to Choose Mutual Funds

A repeatable checklist helps avoid impulsive fund selection and reduces dependence on short-term return tables.

Step 1: Confirm Category Fit

Choose category based on goal and horizon first, then compare funds inside that category.

Cross-category return comparisons are often misleading.

Step 2: Check Consistency

Evaluate downside behavior, style discipline, and risk-adjusted returns across cycles.

Consistency generally matters more than one standout year.

Step 3: Validate Cost and Overlap

Expense ratio matters over long periods but should be judged with process quality.

Avoid hidden concentration by checking overlap among similar funds.

Key Takeaways

  • Fund category fit is the first filter.
  • Risk-adjusted consistency beats headline chasing.
  • Cost and overlap can materially affect outcomes.