New Delhi, Jan. 21 -- Often, investors solely start investing based on returns or after being recommended by a friend. This approach may feel reasonable at first glance, but those who take investments seriously consider a different approach altogether. They take time comparing mutual funds based on various parameters they feel are relevant.

After all, not all funds serve the same purpose, even when their returns look similar. You might even find two mutual funds with comparable returns behaving differently when markets come under stress.

The goal of comparing mutual funds before you invest is not to predict the winner. It's more about reducing risks that can actually be avoided. Ultimately, you would like to invest in a fund that fits y...