The mutual fund universe is filled with hundreds of schemes. And this universe is expanding very rapidly. This is a good development. More schemes mean more choices for an investor. Also, the increasing competition amongst the Asset Management Companies (AMCs) has raised the fund management quality, improved the service standards and spread the investment culture.

But as the universe expands to unmanageably large size, it becomes increasingly difficult to spot the brightest of the stars. One has to patiently work through the universe using certain yardsticks and separate the brighter stars from the not-so bright ones.

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