The mutual fund segment is one of the most lucrative investment options today. There have been multiple options for investors where they can choose among different funds depending on their preference of return and maturity term. But before you go through any one of these investment plans, you must compare mutual funds depending upon their performance and return on investment. It is important that you make the most out of your investment in every aspect by doing a through mutual fund analysis.

How to compare Mutual Fund?

Mutual funds can be compared on different grounds. One of the best ways to compare mutual funds is to have a look at their past history. It is important to understand the previous performance of the mutual fund to make a correct presumption about its future returns. It would also be interesting to have a mutual fund analysis depending upon their performance at different stages of market variance.

You should also keep in mind your risk profile while selecting a mutual fund. It is the most important aspect that investors are concerned about in the present time. The risk may be high in one segment while it may be lesser in another. To have a look at this, you may want to compare mutual funds like liquid funds and asset class.

It is also important to do a mutual fund analysis by their return on investment. For example, the equity segment may be the highest yielding mutual fund but they are also one of the most risky. Since the money is invested in domestic companies listed with the stock exchange, their future performance may not come as a guarantee.

It is also important to look at the performance of the fund within time frames of 3, 6 and 12 months. This would give an average performance output in any given time frame.

While you make an analysis or compare mutual funds, it is also noteworthy to have a look at the mutual fund managers. The AMC profiling would give you their expertise on managing investments while providing investors with greatest output. You should also try to go through the mutual fund prospectus.