When you want to buy a car, how do you shortlist the models? Do you first pick up the latest models or decide the type of car? If you are still unsure, you visit a dealer and the first question you are asked is what type of car are you looking for e.g SUV, hatchback, sedan?
The same goes with the performance comparison of Mutual Fund schemes. You can’t compare performance of schemes belonging to different categories. Schemes from the same category having similar investment objective, asset allocation, and same benchmark index must be compared. Just like you can’t compare an SUV with a sedan because of the way both are designed to suit different needs, schemes designed for different investment objectives may be carrying different risk levels. But
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