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
- Large Cap
- Mid Cap
- 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.