How do we pick equity funds?
For equity funds the performance over a long horizon are considered and funds which have been consistently performing good and at lower risks, as any risk that generates no positive return is not worth considering. We also look for the investments made by the fund manager and evaluate the prospects of those investments turning out to be good. A higher AUM also helps the Fund house to manage its Expense ratio at lower levels. This reduces the burden of fund expenses to an investor.