Mutual Fund Collections

How to Pick the Right Mutual Fund Collection

Not all collections suit every investor. Here's a simple way to find the one that fits your situation:

If you're just starting out, look at low-risk or best SIP fund collections. These include funds with lower volatility and a track record of steady returns, making them a good foundation before adding higher-risk options.

If you have a specific goal, wealth-building, SIP, and thematic collections (like precious metals) are organised around what you want to achieve financially, not just past performance.

If you already invest and want to diversify, moderate- and high-risk collections highlight funds in categories like mid-cap, flexi-cap, and thematic funds that may complement an existing large-cap or debt-heavy portfolio.

If returns are your primary filter, high-return and investor’s choice collections compare top-performing funds across categories, with 1-year, 3-year, and 5-year data available so you’re not relying on a single year’s performance.

What to Check Before You Invest in Any Fund

Collections make discovery easier, but a few checks before investing are always worth doing:

Returns across time periods, not just 1 year. A fund that topped the charts in one year may have underperformed the year before. Looking at 3-year and 5-year annualised returns gives a more reliable picture across different market conditions.

Expense ratio. This is the annual fee deducted from your investment. On INDmoney, you invest in direct plans, which have lower expense ratios than regular plans sold through distributors. Over 10 to 15 years, even a 0.5% difference can significantly impact your final corpus.

Risk level. Every fund in India has a SEBI-mandated riskometer rating, ranging from Low to Very High. A fund’s category, such as large-cap, small-cap, debt, or hybrid, determines its risk band. Match this with your comfort level for short-term volatility.

Fund consistency, not just peak performance. A fund delivering 14% consistently over 5 years is often more reliable than one delivering 22% one year and 4% the next. Check rolling returns or category rank consistency where available.

AUM and fund age. Funds with very low AUM, typically under ₹100–200 crore in equity categories, can face liquidity concerns. Very new funds, under 3 years old, do not have enough history to evaluate properly.

Direct Plans: Why It Matters on INDmoney

All mutual fund investments on INDmoney are in direct plans, not regular plans. Here's why that matters:

When you invest through a distributor or broker, a commission is built into the fund’s expense ratio. This is called a regular plan, and it slightly reduces your returns over time.

Direct plans do not include distributor commissions, so you keep more of what you earn. The difference, typically 0.5% to 1% per year, compounds significantly over long holding periods.

Over 10 to 15 years, even a small difference in costs can lead to a noticeably higher final corpus.