Most of our search or interaction for investment ends up inquiring about the best mutual fund available in the market.

The post is to address the fundamental issue of whether we should invest in the Best mutual fund or Right mutual fund, which can help us to meet financial goal requirements.

Best mutual funds are best in their respective categories like largecap, Midcap or Smallcap and compared with respective peer groups. The best may not be suitable for your investment objective.

Investing in best may end up you taking the undue risk or lower return or paying higher taxes or inferior liquidity.

There are also issues related to over-diversification. An investor having all the best schemes available in the market will end up holding the majority of the market. It will considerably reduce additional return generation for your portfolio.

Read my view on whether to buy the best mutual funds or Right mutual funds.