Generally, mutual fund scheme is made up of investments in equity, debt or a mixture of both. They can be further classified structurally as open-ended or close-ended mutual fund schemes.
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Benchmark
Analyze the performance of the fund with respect to the benchmark. While comparing mutual fund schemes one can consider a parameter as a fund which gains more when the market rises and loses less when the market falls.
Investment period
Investment horizon relates to the time period within which the investor wishes to invest in the given fund. For instance, equity funds are suitable for a long-term investment period. The fund objective for this period generally would be wealth creation at relatively high risk.
If you wish to invest surplus funds for a short term, investors may consider liquid funds as an option for investment.