Don't dump your fund in haste even if it underperforms in short-term

Your fund may have underperformed in 2017 because the fund manager was avoiding momentum and overvalued stocks

Active funds charge a higher fee from investors than their passive counterparts. Investors are willing to pay this fee because in India fund managers are able to beat their benchmarks. But, this also means that the performance of active funds should be evaluated annually.

The hit ratio tells you the percentage of funds that have outperformed their benchmarks in each category. It is a good measure of the level of satisfaction that investors have derived from their fund investments. Even if the markets have done well, you would not be completely satisfied unless your fund has beaten its benchmark.

Equity-linked saving schemes