GOAL: The first step is to determine your financial goal (reminder: not a mere wish, but a SMART goal). This will determine the type of equity fund in which you might invest your money.
RISK PROFILE: Shortlist the best equity plan(s) by assessing your risk profile. Some investors might want the reliability of investment, for whom large-cap funds are the best, whereas some might be willing to take higher risk for higher returns, for whom medium or small-cap funds might be meaningful.
TIME HORIZON: Finally, identify the time horizon for which you would like to invest, which is linked to the SMART
COMPARISON WITH BENCHMARK: A benchmark is the reference point against which fund performance is measured. This comparison shall help investors in choosing the right fund.