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Over the years, mutual funds have become one of the most popular forms of investment owing to its flexibility, convenience and the plethora of choices available. The numerous op�ons also bring with it the complexity of choosing the right mutual fund schemes . Before picking a mutual fund schemes , you need to analyze the following parameters:

1. Investment Objec�ve: The first and foremost step towards selec�ng and inves�ng in SIP under a Mutual Fund Scheme is to understand your investment objec�ve. Why are you making the investment? Is it for fulfilling a short-term or a long-term goal? What kind of risk can you take with this investment? If you have a low appe�te for risk, then it is ideal to invest in a debt mutual fund through a SIP. If however, you are an aggressive investor, equity mutual fund offer a promising rate of return.

2. Costs: Evaluate all the costs that you have to incur like exit loads (if any) which are charged when you exit the investment within a year from the date of purchase. Also look at the annual recurring charges like the expense ra�o as these costs eat into your returns.

3. Por�olio turnover: You need to monitor the fund's por�olio turnover for the ideal sip, i.e. the percentage of the por�olio that the fund manager changes through sales and purchases every year. A higher turnover results in higher costs (brokerage, taxes, etc.) at the mutual fund scheme level, which will ul�mately be borne by the investors thereby reducing the rate of return.

4. Diversifica�on of assets: Three broad categories of mutual fund schemes are equity, debt and hybrid funds (which invest in both equity and debt). In order to diversify your investments and reduce risk, you can invest across different asset classes via mutual funds. Also, even if you are inves�ng in an equity oriented mutual fund scheme, investments can be made across sectors like large-cap, mid-cap and small-cap. This provides diversifica�on benefits, stability from large-cap and growth from small and mid-cap.

5. Quality of the fund management: It is important to invest in a fund that has a strong system and is process-driven rather than a fund that relies solely on the exper�se of a 'Star Fund Manager' when you pick the ideal SIP to invest. However, it is also prudent to look at the fund manager and his or her track record.

6. Assets under management: You need to be aware of the size of the mutual fund Scheme as too small a mutual fund scheme will not be able to explore all investment opportuni�es while too big a mutual fund scheme becomes difficult to manage.

As with all other investments, even the best Mutual Fund Schemes for SIP come with their own risks. However, if you conduct proper due diligence by following the pointers men�oned above, risks can be contained and your investments can achieve op�mum returns.