A mutual fund is a professionally managed company that collects money from many investors and invests it in securities such as stocks, bonds and short-term debt, equity or bond funds and money market funds.
Mutual funds are a good investment for investors looking to diversify their portfolio. Instead of betting everything on one company or sector, a mutual fund invests in different stocks to try to minimize portfolio risk.
The term is typically used in the US, Canada and India, while similar structures around the world include the SICAV in Europe and the open-ended investment firm in the UK.
How to find the track record of a mutual fund?
Gone are the days when people took important steps in their lives without much prior information, whether it’s buying a car or marrying someone. But today, information is available at your fingertips. Even small things like what to order for your next meal are decided after a certain amount of research or comparison, and mutual funds are no exception.
If you have trouble navigating through the various fund categories and all the schemes listed below them, there is no need to worry. You can easily overcome this challenge by visiting a reputable website that features a comparison of the patterns of each category. You can view things like past performance, the fund’s risk profile, how long the fund has been around, and fund size.
You can visit Scheme Performance to access the performance of all schemes under one roof. You can search for the performance of all schemes in any category and compare the scheme’s performance with its benchmark performance, while also getting an insight into how it fared among its peers in the same category. The best part is that you can track the fund’s past performance against its benchmark in a chart format to understand its track record over various time periods for both the regular and direct plan.