Which parameters should one use to check MF performance?

Some of the parameters that one should consider while picking up mutual funds is to essentially first look at the comparison between the fund that you are talking about versus the other funds in the same category. You could also look at the past performance specifically for equity mutual funds. It should be the real long-term performance that you need to look at.

In terms of debt mutual funds, the past one or two year’s performance is extremely essential. You can also look at the portfolio risk in terms of a particular fund and usually the measure that we refer to is beta. Also you can look at the portfolio concentration of the fund that is exposure to a particular stock or exposure to a particular sector. That determines how risky the fund gets.

Also the portfolio turnover is very important because it shows the frequency of buying and selling of stocks by a particular fund and how volatile it is. Please be aware of all of this, it will help you in investing.