financial goals

Things to look at before investing in equity funds

Equity funds have given some benefits for a professionally managing basket of securities. There are different types of funds to leverage, like debt funds, hedge funds, etc. The fund manager firstly defines the risk level with an investment approach that compares to the benchmark of the schemes. Gabe Plotkin looks at all the factors first before deciding which equity to invest in.

Factors to consider before investing in the fund

  1. Size of the fund

If there is no definite ideal size of the equity fund, the fund’s performance will be affected. The size cannot be too small or too large. Also, only by looking at the size can you estimate whether it will be profitable or not.

  1. Risk reward ratio

The potential return that an investor can earn per rupee is risked and invested in the market. Likewise, Gabe Plotkin compared all the returns he expected from the equity fund to assess the maximum risk. Also, it depends on how much trouble the equity will be able to invest over time. But the RRR should be in sync with the risk tolerance levels.

Mutual Fund Investment Strategy


  1. Thinking of the financial goals

Suppose you are planning to invest in the funds; it’s crucial to keep the financial goals in check. Besides, every equity comes with different risks, track records, and composition levels. Investors are also unique when it comes to risk tolerance levels.

  1. Performance of the funds

Look at the performance of the funds over the last five years. This way, you will be able to tell whether it will generate profits or loss. Check the benchmark of the funds and how it has kept the measure.


The performance and size of funds matter a lot when you are investing in equity funds. Do thorough research and perform well.