Look Beyond Performance While Selecting Funds

Hemant Rustagi Chief Executive Officer, Wiseinvest Pvt Ltd.

"Consistency, both in terms of investment philosophy and investment strategy, should be the key parameters while selecting funds."

Hemant Rustagi Chief Executive Officer, Wiseinvest Pvt Ltd.

Analysing past performance is one of the key factors in your fund selection process. However, the focus should be on long-term performance rather than short-term movements in the net asset values (NAVs). If you are one of those investors who rely too much on shortterm performance for making an investment decision, there is a need to rethink your strategy. It is a proven fact that different segments of the stock market behave differently over different periods of time. Therefore, at times, you might find some aggressive funds like Small-Cap, Mid-Cap, sector or thematic funds dominating the list of the top-performing funds.