Best Mutual Funds, Nov. 7 -- Before you decide to invest in a mutual fund, it is important and advisable to evaluate the past returns of that scheme and compare them with the corresponding schemes in the same category.

For example, before deciding to invest in a value mutual fund, it is recommended to assess the returns of that scheme over the past few years (typically 3 years or so) and compare them with those of its competitors in the same category.

For the uninitiated, value mutual funds refer to those funds which identify stocks that are currently undervalued but are expected to perform well over time as the value is unlocked. However, these funds will carry a higher risk, as the impact of a wrong selection can be substantial on the...