Top 5β£ factors to keep in mind while evaluating a Mutual Fund. πΈ
β’ Exit Load
β’ Expense Ratio
β’ Portfolio Turnover ratio
β’ Asset Under Management
β’ The reputation of fund house & fund manager
Let's discuss them in detail. ‡
β’ Exit Load
β’ Expense Ratio
β’ Portfolio Turnover ratio
β’ Asset Under Management
β’ The reputation of fund house & fund manager
Let's discuss them in detail. ‡
1οΈβ£ Exit Load
The exit load is the fee that the AMC charges the investors while redeeming the funds.
The exit load is the fee that the AMC charges the investors while redeeming the funds.
2οΈβ£ Expense Ratio
It is the total % of funds used as operating expenses such as administrative, advertising and others.
It can be calculated as:
Expense ratio = Total expenses incurred / Total AUM
It is the total % of funds used as operating expenses such as administrative, advertising and others.
It can be calculated as:
Expense ratio = Total expenses incurred / Total AUM
3οΈβ£ Portfolio Turnover ratio
It is the rate at which the assets in the fund are bought and sold by the fund managers.
It is calculated as:
PTR = Minimum of securities bought and sold/Average Net assets * 100
It is the rate at which the assets in the fund are bought and sold by the fund managers.
It is calculated as:
PTR = Minimum of securities bought and sold/Average Net assets * 100
4οΈβ£ Asset Under Management
AUM or asset under management is the total value of assets or funds such as cash, bonds, equities, real estate and more managed by the fund house.
AUM or asset under management is the total value of assets or funds such as cash, bonds, equities, real estate and more managed by the fund house.
5οΈβ£ The reputation of fund house & fund manager
The performance of the funds is highly dependent on the fund house and fund manager. When choosing the fund house, a well-known track record is vital, the one which has handled various market cycles.
The performance of the funds is highly dependent on the fund house and fund manager. When choosing the fund house, a well-known track record is vital, the one which has handled various market cycles.
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