When people start investing in mutual funds, one of the first things they often hear is, “This fund gave amazing returns.” It sounds tempting, right? After all, if a fund has performed well, shouldn’t it be perfect for you too? The truth is, not every good mutual fund is right for every investor.
The “Good” Fund Myth
A fund may be good because it has delivered strong returns, is managed by a reputed fund house, or is popular in the market. But your investment journey is unique. A fund that suits your colleague, cousin, or friend may not suit you. Why? Because your goals, time horizon, and ability to take risk could be very different.
For example, an equity-heavy fund may look good on paper. But if your goal is to save for your child’s education in the next 3 years, that “good” fund might expose you to too much volatility.
What Really Matters
Instead of chasing popular names or top-returning funds, the key is to choose funds that fit your:
Financial goals – Are you investing for retirement, buying a home, or a short-term need?
Time horizon – How long can you stay invested before you need the money?
Risk tolerance – Are you comfortable with ups and downs, or do you prefer stability?
A “good” fund becomes the right fund only when it aligns with these factors.
The Role of a Distributor
As a mutual fund distributor, Pragati Funds helps you understand your options clearly. We provide access to a wide range of funds, explain how they work, and ensure you can make informed choices that match your circumstances.
Don’t fall into the trap of thinking one size fits all. Every investor’s journey is different, and so is the mutual fund that fits them.
