Mutual Fund Ranking: A Smart Starting Point, Not the Final Decision

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 For new investors, mutual fund ranking can feel like a shortcut to success. You see 5-star ratings and assume you're picking a winner. But here’s the truth—rankings reflect past performance, not future returns. A fund ranked high last year might not perform the same next year. So, while rankings are useful to shortlist top performers, don’t make them your only criteria.

Look at consistency over 3–5 years, the fund manager’s track record, expense ratio, and risk metrics. Also, check whether the fund matches your financial goals and risk appetite. A top-rated mid-cap fund may not suit someone looking for stable growth.

Start by exploring rankings on platforms like Value Research, Morningstar, or Moneycontrol. But always go one step further—read fund fact sheets, understand the portfolio mix, and see if it aligns with your timeline and expectations.

The best investors don’t just chase high ranks—they understand what drives them.

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