What is the process to select the best equity mutual fund investment?

Here are five tips that can help you choose the best equity mutual funds.

Choose a mutual fund based on your risk appetite. Equity Mutual funds can generate significantly higher returns. However, they involve high risks, so ensure you consider your risk appetite before investing.
Go for mutual funds that are in line with your investment horizon. If you are in it for the long run, equity mutual funds are a better option. They may be slightly volatile, but the risk is ironed out if you stay invested for extended periods, say five years or more.
Choose funds based on your financial goals. Define your financial goals over the short and long term and choose securities accordingly.
Remember to choose equity mutual fund schemes after carefully comparing the fees and commissions involved. It’s always advisable to opt for a mutual fund with lower charges. This ensures that more of your money is invested, and you get more bang for your buck.
Look at the past performance of the various equity mutual fund schemes before settling on one. It is always favourable to opt for a fund that’s been performing well historically.