Have you ever found yourself stuck between two great-looking mutual funds, unsure which one aligns better with your financial goals? You are not alone, as many investors struggle to identify which fund truly aligns with their goals and risk appetite.
- Why Comparing Mutual Funds Matters
- Key Features of Paytm Money’s Fund Comparison Tool
- Side-by-Side Fund Comparison: Instant Visual Clarity
- Multi-Timeframe Returns Comparison
- Top Holdings Transparency
- Sector Exposure Breakdown
- Fund Manager & AMC Information at a Glance
- Clean, Scroll-Based Comparison Flow
- Summary: Your 60-Second Workflow
- Overall Benefits of Comparing Funds on Paytm Money
- Steps to Compare Two Mutual Funds on the Paytm Money App
- Conclusion: Stop Guessing, Start Comparing
- FAQs
While comparing two mutual funds, the choice can quickly feel overwhelming, especially with thousands of schemes available for investors today. Paytm Money simplifies this process with its “Compare Funds” feature, allowing investors to evaluate two funds side-by-side in a matter of seconds. From SIP simulations to sector exposure analysis, this tool is designed for quick, data-driven investment decisions.
Here’s a detailed breakdown of the key features and benefits of using the Compare Funds tool on Paytm Money.
Why Comparing Mutual Funds Matters
Before we dive into the “how,” let’s look at the “why.” Mutual funds may appear similar at first glance, but their performance can vary significantly depending on factors such as fund management, investment strategy, and risk exposure.
Comparing mutual funds helps investors identify schemes that align more closely with their financial needs. An effective comparison highlights differences in returns, costs, and how consistently a fund performs across market conditions.
Taking the time to compare funds reduces the risk of selecting an option that seems appealing initially but does not match your risk appetite or investment horizon. This approach helps ensure that your investments are better aligned with your goals and work more efficiently over the long term.
(Source: Cleartax)
Key Features of Paytm Money’s Fund Comparison Tool
Side-by-Side Fund Comparison: Instant Visual Clarity
One of the most powerful aspects of the Compare Funds feature is the side-by-side comparison. Instead of toggling between multiple tabs or memorising numbers from fund fact sheets, Paytm Money displays two mutual funds on a single screen.
You can instantly see:
- Fund Name & Plan: For example, ICICI Prudential Large Cap Fund (Direct–Growth)
- Assets Under Management (AUM): Fund size indicating investor participation and scale
- Plan Type: Direct plan or Regular plan
- Category & Sub-Category: Such as Equity → Large Cap
- Benchmark Index: Index used to measure fund performance
- Risk Level: Low, Medium, or High
- Star / VR Rating: Expert-based fund quality assessment
- Minimum SIP Amount: Starting investment, such as ₹100 or ₹500 per month
- Minimum Lump Sum Amount: One-time investment requirement, such as ₹1,000 or ₹5,000
- Expense Ratio: Annual cost of managing the fund, for example 0.9% or 0.7%
- Exit Load & Conditions: Charges applicable on early withdrawal, such as 1% if redeemed within one year
Why it helps: Clear visual comparisons help you identify differences quickly, saving time and simplifying fund selection. Even beginner investors can easily understand costs and accessibility, making it easier to choose funds that suit their budget, SIP plans, and long-term investment goals.
Multi-Timeframe Returns Comparison
Past performance is an essential factor in evaluating mutual funds, and the Compare Funds feature allows investors to view historical returns across multiple timeframes, including 3 months, 6 months, 1 year, 3 years, and 5 years.
All returns are displayed in a clean, comparable percentage format, making it easy to identify short-, medium-, and long-term consistency.
Why it helps: Instead of focusing solely on recent performance, you can analyse patterns and stability over different market cycles, helping you choose funds that align with your risk appetite and long-term strategy.
Top Holdings Transparency
Understanding where a fund invests is crucial. Paytm Money highlights the Top 5 holdings of each fund, including:
- Company Stock Names
- Allocation Percentages
Why it helps: You can instantly gauge portfolio concentration and check if the funds are investing in similar large-cap or sector-focused stocks. This information is vital for assessing risk and potential returns.
Sector Exposure Breakdown
The Compare Funds feature presents a clear sector-wise breakdown of a fund’s top three sectors, such as Financials, Energy, and Automobile. This helps investors quickly understand sector concentration and assess whether a fund’s exposure aligns with their diversification and risk preferences.
Why it helps: Sector exposure helps investors assess diversification and sector bias. You can ensure your portfolio is balanced and aligns with your investment strategy without reading lengthy disclosures.
Fund Manager & AMC Information at a Glance
This section provides a quick overview of the fund manager’s background and experience, along with key details about the Asset Management Company (AMC). Investors can view the fund’s Assets Under Management (AUM), AMC name, and total AMC asset base to assess fund scale, liquidity comfort, and the overall credibility of the fund house.
Why it helps: Investors can quickly understand fund size, liquidity, and AMC credibility, which can influence stability and investor confidence.
Clean, Scroll-Based Comparison Flow
The comparison screen is designed to avoid clutter, with sections that can be expanded or collapsed:
- Basic Details
- Returns Comparison
- Holdings
- Sector Exposure
- Fund Manager & AMC Info
Why it helps: You view only the information you need, in a structured flow. This keeps the decision-making process fast and focused, making the tool beginner-friendly yet powerful for experts.
Summary: Your 60-Second Workflow
- 0–15s: Search for your primary fund and tap “Compare.”
- 15–30s: Check the Expense Ratio and Exit Load. Lower costs may be easier to manage over the long term.
- 30–45s: Look at the 3Y and 5Y CAGR to ensure long-term consistency.
- 45–60s: Review Sector Exposure to ensure it aligns with your existing portfolio.
(Source: Paytm Money App)
Overall Benefits of Comparing Funds on Paytm Money
By using the Compare Funds feature, investors gain multiple advantages:
- Compare two mutual funds in under 60 seconds
- Make data-backed decisions without technical jargon
- Enjoy visual clarity for faster understanding
- View SIP simulations based on selected inputs
- Access a beginner-friendly tool that’s also robust for experienced investors
(Source: Paytm Money App)
Steps to Compare Two Mutual Funds on the Paytm Money App
- Step 1: Open the Paytm Money app and navigate to the Mutual Funds section from the home screen.
- Step 2: Scroll down to the Mutual Fund Tools area and tap on Compare Funds.
- Step 3: Click on Select Fund and choose the first mutual fund you want to analyse.
- Step 4: Select the second fund to view a side-by-side comparison.
- Step 5: Alternatively, you can choose from the commonly compared mutual fund pairs displayed on the screen for quick analysis.
These steps help you compare mutual funds easily and make informed investment decisions in just a few taps.
(Source: Paytm Money App)
Conclusion: Stop Guessing, Start Comparing
In a market environment where inflation and volatility are constant, having access to clear and structured information can support better investment evaluation.
Whether you are a first-time investor or more experienced, the Compare Funds tool on Paytm Money helps you review key fund details side by side in a simple, structured format.
Comparing costs, risk indicators, holdings, and sector exposure before investing can help you align fund choices with your long-term financial plans.
Disclaimer: Investment in the securities market is subject to market risks. Read all the related documents carefully before investing. This content is purely for information purpose only and in no way is to be considered as an advice or recommendation. The securities are quoted as an example and not as a recommendation. Investors are requested to do their own due diligence before investing.
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