Beyond Returns: 5 Key Signs to Pick the Right Mutual Fund

• Don't just rely on past returns; assess risk, stability, and fund manager capability.
• A Sharp Ratio above 1 indicates good performance relative to risk taken, showing balanced market volatility handling.
• Positive Alpha consistently above 0.75% suggests skillful stock selection and strategy by the fund manager.
• An Information Ratio above 0.5 means consistent outperformance of the benchmark, reflecting disciplined strategy.
• Look for balanced Upside-Downside Capture: high returns in upturns (Upside Capture > 100%) and limited losses in downturns (Downside Capture < 100%).