Select best mutual fund for your portfolio | Money Psychology

Many people look at returns while selecting a mutual fund. However, return is not the only parameter to choose a mutual fund. Selecting an investment is never so easy. You should look at performance, risk, and cost metrics while selecting a mutual fund.

This video talks about the following 6 metrics one should check while selecting a mutual fund:
- Rolling Returns
- Sharpe Ratio
- Standard Deviation
- Beta
- Asset Under Management (AUM)
- Total Expense Ratio (TER)

Also, you can find below a mutual fund fitness scorecard which acts as a checklist for you while selecting a suitable mutual fund for your portfolio.

Do show us your love in the comments below!

Click the link below to learn about the important metrics to analyze mutual funds:

0:00 - Let’s begin
2:30 - Rolling Returns
6:22 - Sharpe Ratio & Standard Deviation
9:53 - Beta & Capture Ratio
11:40 - Asset Under Management (AUM)
12:10 - Total Expense Ratio (TER)
13:56 - Bloopers!

[ZerobyZerodha]

Click the link below to learn about the important metrics to analyze mutual funds:

[narwhalgaming]

With this amount of editing and quality content twice a week
This channel is pure gold

[saurabhgupta]

6 key metrics to look for:

1. Rolling Returns: Comparing returns over different periods to ensure consistency.
2. Sharpe Ratio: Evaluates returns in relation to the risk taken (returns divided by standard deviation).
3. Beta: Measures the fund's volatility relative to the benchmark (e.g., Nifty).
4. Capture Ratios: Includes upside capture ratio (fund's performance in rising markets) and downside capture ratio (fund's performance in falling markets).
5. AUM (Assets Under Management): Often misconceived as a sole indicator of a good fund, but it should not be the primary factor.
6. Total Expense Ratio (TER): The fee charged by the mutual fund company, which should be reasonable compared to others in the category.

[kumarpawar]

"Zero1 is at war against every YT influencer!"
- Avg YT influencer
I hope these videos reach a wide audience. Keep up the good work, team!

[vipinsharma]

Love the way you have explained tough financial metrics to non finance people like us ....

[Khan-Arbaj]

I wish i could have a teacher or manager like this.. thank you for this video ❤

[sourabhkulkarni]

Much needed checklist and parameter list. Could you also share in future in videos the existing tools and websites where we can look at all this and compare? Like a single source of all required information. Previously when I tried to look at it, i was not lucky enough to get all of these info in a single source/website.

[aggshi]

This content is pure gold....The analogies drawn to simplify the complex financial concepts like sharpe ratio and stamdard daviation were simply astounded.

Keep up the good work guys!!? ❤❤

[niranjankolhatkar]

You should have also told us the tool/website where we can get all the metrics for comparison..

[genericstospecifics]

Could not find a reliable resource to check rolling returns

[chaugulepankaj]

Now I know his salary before increment 😂 Rs. 121600/- per month. He received 10% increment.

[srikanthboddu]

Can you please explain NAV and which day nav will be considered for alloting MF units. During this election correction zerodha coin didn't allot nav of same day even when payment is done same day before 2.30PM

[manoharbs]

I guess it's better to go with some index fund, like bse or nse ones with least TER, that's the best MF. All the mutual funds keep changing CAGRs so can't really relay in it 😂

[prathamgupta]

As a student, this is the best channel to learn,
Absolutely Amazing guys🥰

[chiramshi]

You guys simply showed how simple the complex parameters can be simplified.. Cheers..

[aniganguly]

One small input... You may choose to consider. When you mentioned standard deviation in the example you quoted on airline travel while a lesser standard deviation is good, just std dev on it's own shouldn't be looked. Assume an airline company on a route has 20 min std deviation and another has 40min... By logic lesser is more consistent performance but change one variable like aircraft type or route or travel time and the perspective changes.. . 20 min on total journey of 60min and 40 min over journey time of 4 hrs have a different flavor 😊... Generally use coefficient of variance for a True measure of comparing consistency... Its a ratio of standard deviation over mean... (std dev /mean).
I tend to use this to compare consistency and it hasn't been wrong... So far 😂!
None the less a very good and educational video... Thanks a lot guys for all the efforts you put in at Zero1... Keep up the good work 👍

[evm]

Life mein Key 🔑 Point - Always keep expectations at medium ( Not too low and definitely not too high!) I needed to hear that.

[sandeepraulo]

Superb... A lot many financial influencers miss to teach this so easily

[harshbhatia]

An excel sheet for this would have been much better

[saurav]

I was looking for explanation of rolling returns and couldn't understand but you have explained with graphics that was awesome 👍