You should know that there is no guarantee of returns in a mutual fund because the mutual fund is subject to market risk. Especially if you are investing a lump sum as it is riskier than SIP. It is not mandatory that if the mutual fund has given good returns in the past, then it will surely give you good returns in the future also.

It depends upon so many factors like Size of the Mutual Fund, Age of the Mutual Fund, Experience of the Fund Manager, Performance of Mutual Fund, charges of Mutual Funds like Expense ratio, Exit Load, Risk Appetite of investor, etc.

Let’s deep dive into these points step by step!