How To Choose Mutual Funds And Avoid Costly Investing Mistakes

Many investors choose mutual funds based only on recent returns, often ignoring risk, fund quality, and long-term consistency. Nasser Salim, MD, Flexi Capital, says investors should avoid chasing top-performing funds without evaluating key factors such as the fund manager’s track record, the AMC’s credibility, portfolio volatility, performance during market downturns, and the fund’s asset size. He believes successful investing requires aligning fund selection with financial goals and risk tolerance rather than short-term performance.