According to the dos and don'ts of selecting mutual fund schemes, what should investors consider?
A
Investing in schemes based on past performance alone
B
Selecting schemes based on tips from friends or family
C
Considering their investment needs, preferences, and risk profile
D
Focusing only on schemes with the lowest Net Asset Value (NAV)
Correct Option:
C
Explanation
Investors should select mutual fund schemes based on their financial goals, investment needs, time horizon, and risk profile. Decisions should not rely solely on past performance, tips from others, or a scheme's NAV.
