Mutual fund investment will give you higher returns than others, but you must do these 5 things | News India

Hybrid funds combine elements of both equity and debt, providing a balance between risk and returns.

Fund Performance

Look at the historical performance of the mutual fund, ideally over a long period of time, such as 1 year, 3 years or 5 years. Look at consistent returns and compare the fund's performance to its benchmark index and peer group. Remember that past performance is not an indicator of future results.

Fund Managers and Fund Houses

Before investing in any mutual fund scheme, find out what the fund house i.e. the company is and who is the fund manager of that fund. Review the historical performance of both the fund house and the fund manager. Both of these play an important role in choosing a good mutual fund scheme.

expense ratio

Expense ratio is the annual management fee of the fund. It has to be paid to the fund manager. Generally, a lower expense ratio is more beneficial for investors, leading to better returns. Therefore, before investing in any fund, definitely check the expense ratio. By doing this, you will get huge savings and better returns.

Exhaust load

Before investing in any mutual fund, check the exit load if you withdraw money early from it. After this, also assess the liquidity of the fund. If you keep these things in mind, then believe me, you will get more returns on your investment than others.