Use compare mutual fund tool to analyse fund performance and assess the quantitative and qualitative parameters of mutual funds. This is of great importance to ensure that your investments are in line with your investment objectives. MF comparison helps you picking up a mutual fund for your investment needs.
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Compare between top searched mutual funds and find the best mutual fund that suits your lnvestment goals.
Tax Saving
₹ 26,042
Fund Size
23.348%
5 Year CAGR
5 Y CAGR
Large & Mid Cap
₹ 23,713
Fund Size
26.714%
5 Year CAGR
5 Y CAGR
Large Cap
₹ 64,223
Fund Size
21.735%
5 Year CAGR
5 Y CAGR
Value
₹ 50,155
Fund Size
28.012%
5 Year CAGR
5 Y CAGR
Tax Saving
₹ 17,489
Fund Size
24.202%
5 Year CAGR
5 Y CAGR
Flexi Cap
₹ 78,491
Fund Size
26.402%
5 Year CAGR
5 Y CAGR
A comparative analysis is of great value in selecting the right mutual fund scheme to meet financial goals in the defined time. Mutual Fund comparison does not mean only looking at the past returns. Of course, returns are one of the measures of comparison but there are several other things that you should take into consideration.
You must perform a mutual funds research and should consider the following parameters for comparing mutual funds:
There are thousands of equity schemes with different investment objectives. Few fund categories under equity are large-cap, mid-caps, small-caps, and multi-caps funds. There are value funds, contra funds, and sectoral fund categories as well. All of them are equity-oriented mutual funds but have different investment objectives.
Likewise, there are many debt mutual fund schemes. When you compare any two or more mutual fund schemes you should know their investment objectives.
Moreover, the portfolio manager will invest the funds pooled as per the investment objective. Hence it is important that the investor must pick-up the fund that is closer to their financial goals.
Every mutual fund is tied to a particular index or benchmark. The benchmark helps in comparing the mutual funds performance over a period of time.
For example, suppose equity mutual fund A is benchmarked to the Nifty 100 total return index. Keeping other parameters the same, for a given period if the index gained 18% and the fund A rises 20% then the fund has out-performed the index.
Whereas, if the index falls by 10% and the fund A goes down by 12% then fund A has under-performed for the given period.
Select the mutual fund scheme that has given consistently higher returns than its benchmarked index.
Not all equity mutual funds are equal in risk. Small-cap equity mutual funds have more risk in comparison to large-cap mutual funds. The varying degree of riskiness of a particular mutual fund is due to the underlying investments it does.
You should compare mutual funds on the basis of their risk and pick the mutual fund scheme that matches your risk-taking capacity.
You can use the following risk metrics to compare mutual funds:
Mutual funds having a fairly long existence have seen all types of market cycles/ fluctuations. They have business experience and have grown over time in assets (AUM). Such mutual funds are from stable asset management companies (AMC) or fund houses.
So, you need to consider the number of years of mutual fund existence and their track record while comparing mutual funds.
Expense ratio and exit load are charges you pay to a fund house for mutual fund investments. The loads cover the management, redemption, and mutual fund administration expenses.
A mutual fund with a lower exit load and expense ratio is preferred. However, a mutual fund with a lower expense ratio does not mean that the fund is generating higher returns for you.
You should select a mutual fund that has higher returns even if it is charging slightly higher loads.
Historical returns are a good indicator to study the mutual funds performance across different market cycles. One can estimate the potential returns from their SIP or lumpsum investments. They can use a mutual fund calculator to estimate returns. Scripbox’s SIP calculator can help estimate SIP returns and a lumpsum calculator for lumpsum investments. Investors can also compare funds based on their SIP return to select the fund to invest. Hence the returns calculator can help investors in mutual funds performance comparison.
You can also compare the portfolio of a mutual fund with its peers. You can compare the allocation of funds across market cap, number of securities the fund has invested in, the portfolio holdings across sectors, etc. Furthermore, you can also compare the modified duration, average maturity and YTM of funds.
There are 8000+ mutual fund schemes in India. Picking up the right mutual fund matching your financial goals, investment horizon, and risk-taking capacity is a huge task.
Moreover, mutual funds from a particular category look quite similar. This can confuse you. You could possibly choose the wrong mutual fund scheme. Mutual fund comparison helps you find the differences between them.
Mutual fund comparison will help you understand about the riskiness, investment objectives, consistency of returns, years in existence, and the quality of the fund.
All these factors help you in selecting the best mutual fund scheme for your investment needs.
The equity mutual funds invest a major portion of the portfolio in equity and equity-related instruments in various proportions. The proportions are based on the fund’s investment objectives. Equity mutual funds scheme is suited for aggressive investors that have the capacity to take higher risk. The equity mutuals are helpful in creating long-term wealth because they are a high-risk high return investment.
The following tips will help you compare equity mutual funds in the right way:
Check out: Best Equity Mutual Funds to Invest
The tax saving mutual funds are no different than any other mutual fund with the only difference of having a tax benefit and a lock-in period. The amount invested is allowed as a deduction up to Rs 1.5 lakh under section 80C of the Income Tax Act, 1961.
The mutual fund portfolio is majorly equity-oriented and the lock-in period for tax saving mutual funds is 3 years. The tax saving mutual funds are also known as Equity-Linked Mutual Funds ELSS. In case the investment is made through SIP, the lock-in period is calculated for every installment of investment.
The benefits of investing in a tax saving mutual fund or ELSS are listed below:
Check Out: Best Tax Saving Mutual Funds to Invest
Debt mutual funds invest a major portion of the pooled funds in debt and money market instruments having specified maturities.
Examples of underlying debt and money market instruments are;
Debt mutual funds investment is best for risk-averse or short-term investors who prefer capital protection over fund appreciation. Debt funds do not have wide market fluctuations like equity markets. However, there is an element of default or credit risk in debt mutual funds. Hence investors have to ensure that the portfolio has more of AAA and AA rated securities to minimize credit risk.
The debt mutual funds are better suited for short to medium-term life goals like creating a corpus of emergency funds, funds for the wedding, buying a dream car or retiring debt.
In addition to the above criteria mentioned for equity funds, you need to consider the following additional factors for debt funds:
Check Out: Best Debt Funds to Invest
As per the SEBI categorization of mutual fund schemes, the liquid mutual fund invests in securities that have a specific maturity of up to 91 days only. Liquid funds primarily belong to the debt category of mutual funds.
The investment objective of the liquid mutual fund is to create a highly liquid corpus of emergency funds. Thus you can use liquid funds for creating a corpus of funds for financial goals like emergency funds for paying education fees, medical emergency or income support in case of job loss.
Liquid funds offer a lower return in comparison to equity or hybrid mutual funds that carry a high risk. Thus, liquid funds are a low risk and low return investment option, best for the risk-averse, short-term investors.
Check out: Best Liquid Funds to Invest
The following are the common mistake that you should avoid while comparing mutual funds:
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