How an investor should select a scheme among so many schemes in mutual funds ?

Investors should carefully read the offer documents of mutual fund schemes. Investors may also be interested in the performance history of the mutual fund scheme and similar schemes. They might also compare performance to other schemes with similar investment goals. While past performance is not an indicator for future performance, and good performance may not be sustained in future, it is an important factor in making investment decisions. For debt-oriented schemes, investors must look beyond past returns to assess the quality of the debt instruments. This is also reflected in the rating. Higher returns but lower investments in instruments with higher ratings may make a scheme more secure. Investors may also be concerned about the quality of their portfolios in equities plans. Investors may seek the advice of experts.