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Selecting equity mutual funds from Clutter

Arun writes is this easy to understand blog on ” how to select equity funds” with a great analogy from Steve jobs.

There are essentially only four categories to invest… rest everything is actually a noise for small investor

  1. Large Cap
  2. MultiCap
  3. Mid Cap
  4. Small Cap

Large cap ( for first time investor) category, investor should invest through  https://economictimes.indiatimes.com/wealth/invest/forget-direct-plans-these-etfs-charge-only-0-05-per-cent/articleshow/53075935.cms these direct plans of AMC which charge as low as 5 basis points. why do you need to pay 2% plus for any actively managed large cap fund when 80% of the investment fund manager makes is essentially in large cap stocks ( most largecap fund managers are not beating their benchmarks in last couple of years). I personally prefer Multicap category because of the risk adjusted returns of this category and the space Portfolio managers have for manouverability.

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