Choosing a mutual investment fund demands time, research, and some analytical work. Your aim is to achieve high returns in the future, which makes all your efforts worthwhile. Here are the main factors to consider when selecting a mutual investment fund:

1. Type of the fund: Based on your objectives, you must ascertain your requirements — whether an open-end or closed-end mutual fund, an equity fund or an Ijarah fund, and so forth. This initial step will help you narrow down your options for further selection. Choose wisely!
2. Fund Performance: Past high returns don't guarantee equally high future returns, as they can vary significantly from year to year and differ across various categories of securities and assets. Therefore, you need to assess the fund's performance over an extended period, like three years. Take into account not just returns but also risks. Risk is commonly measured as volatility, reflecting the extent of price fluctuations around an asset's trend. In a stable market, volatility remains low, but during periods of change, such as crises, volatility sharply increases. A portfolio with a higher proportion of stocks will generally have greater volatility, and zero volatility is only guaranteed when there are no risky assets, such as cash.To steer clear of inefficient funds, compare the performance of funds within the same category both against each other and against the target index. Analyze!
3. Fund Size. A large fund often appears more reliable in terms of the safety of investments. However, smaller funds can also navigate the market efficiently to generate returns. Study the securities commission requirements of the country where you're investing in mutual funds to determine the appropriate fund size. Evaluate!
4. Commission Size. Details regarding all types of fees (management fees, discounts, surcharges, etc.) are required in the fund documents. Sales agents possess this information. However, there might be instances where they may adopt the stance of "if not asked, not disclosed." Therefore, it's advisable to be proactive to ask about them. Inquire!
5. Management Company Reputation. Assessing it can be quite difficult. Verify whether the management company of the fund you've shortlisted has been implicated in scandals or legal proceedings. Respected funds uphold their reputation. Research!
6. Manager's Personality. Your manager is a distinct individual. Their attributes, track record, and contributions to shareholders can help you make an informed decision when selecting a mutual fund. Within the investment bulletin, the manager should provide insights about themselves and their investment strategy. Read!
7. Ranking. Funds can be ranked by various independent financial research firms, investment publications, independent analysts, and sometimes even by regulatory bodies or government agencies. These rankings are typically based on factors such as performance, risk, fees, management quality, and other relevant criteria. Investors often use these rankings as a reference when making investment decisions. The fund rating should take into account the key factors of fund efficiency and emphasize the top-performing and underperforming funds in each category. Study!