New Delhi, July 16 -- One-year returns often become the deciding factor for investors reviewing their mutual fund portfolios. A fund that has recently outperformed attracts fresh money, while one that has lagged is quickly shown the exit door. But experts say relying solely on returns can lead to poor investment decisions.

Instead, investors should evaluate how consistently a fund has performed across market cycles, the risks it takes to generate returns and whether it continues to follow its stated investment strategy. Looking beyond headline returns can help investors avoid performance chasing and build portfolios better aligned with their long-term goals.

According to Debasish Mohanty, Chief Strategy Officer at The Wealth Company Mut...