Star ratings can be misleading when selecting mutual funds. While they offer a quick snapshot, they don't tell the whole story. Investors often chase top-rated funds, assuming they're the best choice. However, a high rating today doesn't guarantee future performance. Here's how to make a more informed decision.
Choosing a mutual fund requires more than just looking at star ratings. Consider your goals, risk tolerance, and the fund's strategy. Use both quantitative and qualitative data to make an informed decision. Remember, past performance is not a guarantee of future results.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always consult with a financial advisor before making investment decisions. Mutual fund investments are subject to market risks. Read all scheme-related documents carefully.
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