After deciding on your investment objectives, you need to find out which mutual fund category will help you achieve those objectives within a suitable period. The best way to shortlist a handful of schemes from the plethora of options available to you is by analyzing the mutual fund performance since inception with a dedicated focus on the last 5 years. This is mainly because mutual fund schemes can provide high returns in a year, but if they fail to sustain the performance over a period they are not reliable investment options.
To know more about the best performing categories in the past five years you can use our Mutual Fund Category Performance tool to compare each other.
Please keep in mind that looking at one factor in isolation will not give you the entire scenario. For example, a fund might not perform well in one year. However, if it outperforms the benchmark then it’s a good investment option. Past performance is not a guaranteed statistic that the scheme will perform well in the future also.