How to read a factsheet in five minutes

A mutual fund factsheet looks intimidating at first glance — rows of numbers, ratios and jargon squeezed onto one page. But most factsheets follow the same structure, and knowing where to look cuts the reading time to a few minutes.

Start at the top: scheme category and riskometer tell you what kind of fund this is and how volatile it's expected to be. Next, scan the portfolio allocation — which sectors or instruments the fund actually holds — to check it matches what you expected from the scheme name. Then look at the expense ratio and exit load, since these affect your actual returns directly.

Trailing returns are useful for context but shouldn't be the first or only thing you check — a fund that did well over one specific period isn't guaranteed to repeat it.