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The Dark Side of “Best Mutual Funds” Articles (And Why You’re Trapped)
- Ripradaman R
- Jan 7
- 2 min read
Introduction
Every investor has searched for “best mutual funds to invest in.”
The articles look simple, confident, and reassuring.
But most of them quietly push you toward poor decisions.
Understanding why they mislead is critical before you invest a single rupee.
The Illusion of “Best”
There is no universal “best” mutual fund.
Funds perform differently across market cycles
Risk appetite varies for every investor
Time horizon changes outcomes dramatically
What is best for one investor can be harmful for another.
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Past Returns Are Overplayed
Most articles rank funds purely on historical performance.
Last 1–3 year returns dominate the narrative
Market cycles are ignored
Mean reversion is rarely mentioned
Strong past returns do not guarantee future results.
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Risk Is Hidden Behind Rankings
Risk metrics rarely get equal importance.
Volatility is buried or skipped
Drawdowns are not highlighted
Category risk is underexplained
High returns often come with high, unseen risk.
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Categories Are Mixed Carelessly
Articles often compare unlike funds.
Large-cap vs flexi-cap confusion
Thematic funds ranked with diversified funds
Sector exposure ignored
This creates false comparisons and wrong expectations.
Commission and Agenda Bias
Many “best fund” lists are not neutral.
Distributor-linked platforms promote commission-heavy funds
Sponsored content is not clearly disclosed
Popular fund houses get repeated visibility
The list often serves the publisher before the investor.
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Short-Term Noise Drives Long-Term Decisions
Frequent updates create unnecessary churn.
Monthly “top fund” changes encourage switching
Investors exit good funds prematurely
Long-term compounding is disrupted
Consistency matters more than constant optimization.
What These Articles Don’t Ask You
The most important questions are missing.
What is your investment goal?
How long will you stay invested?
How much volatility can you tolerate?
Without these answers, fund lists are meaningless.
Conclusion
“Best mutual funds” articles simplify a complex decision into a ranking.
They prioritise convenience over suitability.
Smart investors read beyond lists and focus on alignment, risk, and discipline.
Clarity beats shortcuts every time.
FAQ
Q1. Are best mutual fund articles completely useless?
No. They can offer starting points, but not final decisions.
Q2. Should I avoid funds with high past returns?
Not necessarily. But returns must be evaluated with risk and consistency.
Q3. How should I actually choose a mutual fund?
Based on goal, time horizon, risk tolerance, and portfolio fit.
Q4. Are regular plan recommendations biased?
Often yes, due to embedded distributor commissions.
Q5. How often should I review my mutual fund portfolio?
Once or twice a year, or when goals materially change.
Citation
Securities and Exchange Board of India (SEBI)
AMFI – Association of Mutual Funds in India
Morningstar Investment Research
Vanguard Investment Principles
CFA Institute – Investor Education
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