How do first time investors make a mutual fund comparison?

As an investor, you have many mutual fund options to choose from. There are a number of Mutual Funds available in the markets. However, you need to take a closer look to make a mutual fund comparison.

Making a mutual fund comparison in India among so many mutual funds and selecting the one which suits your needs can be a tough task. However, below checkpoints can be helpful when it comes to selecting a fund.

Check if the fund you are selecting matches your goals. Outline your investment goals with the assistance of a financial advisor. Then it would be easier to make a mutual fund comparison with a mutual fund comparison tool to find the best-suited fund type.
Assess how the respective asset class works. This could be related to the type of assets in the fund. In equity funds, it is the rise in the market value of the concerned shares that give you returns whereas in debt funds it is a fall in interest rates that increase the NAV and the future value of your investment.
Check how liquid is this investment. If you are in need of money on an emergency basis, would you be able to sell immediately?
Some investments have lock-in periods during which it cannot be sold, for example, ELSS investments, some have exit loads. Perform a mutual fund comparison for all these parameters before going for the type of fund.

Look how long has the AMC been in business. Is their management experienced? Have they made money for investors before?
Use a mutual fund comparison calculator to check how has this fund performed over the long run? Where can you get an independent evaluation of this fund? You can also refer to factsheets of mutual fund schemes that would show you their past performance. Check performance over long periods like 5 years or so that will give you an idea of how the fund has performed in different market cycles.
Check the total fees structure of the scheme . Investments bought through distributors charge a transaction fee and commission. Mutual funds charge an expense ratio, for managing investments. You can invest in Direct Plan to of mutual funds wherein no commission and transactions charges is to be paid to save cost.
Yes, stay informed of these vital details too before you decide to select a mutual fund!