Comparative Analysis of Mutual Fund Schemes available at Kotak Mutual Fund and HDFC Mutual Fund

Generally, when an investor decides to study the investment options readily available in today's confusing, complex and risky environment, he thoroughly evaluates all the investment options. While evaluating such multiple options, prima facie, he naturally considers several factors like Past performance of the option under study, Risk adjusted returns from the invested plan, Share in the portfolio policy, Fund house, Back Returns i.e. percentage of Interest/Dividend and Consistent rate of return on investment, to mention a few. In the words of Warren Buffett, “Risk comes from not knowing what you are doing”.

If, at all, an investor decides to follow all these options for his investment, quite strictly, preferably he would come to a rational conclusion of an option of Mutual Funds. However, when an investor decides to opt for Mutual Funds, he proceeds with the assumptions that the performance of mutual funds is relatively good, the return on mutual fund is better as compared to the returns on fixed deposits with banks or posts. The performance of mutual funds is good because of proper portfolio and risk management and it is linked and dependent on the stock market. As Robert Arnott has commented, “In investing, what is comfortable is rarely profitable”.