1. Fund Manager/ Fund managing team
An organization (or a mutual fund) is as good as the people who manage it. An experienced and efficient fund manager would be able to select the right securities and time for investing; the success of the fund greatly depends on both.

2. Performance of the securities in the portfolio
A mutual fund can invest in various asset types like stocks and equities. The performance or results of the fund is therefore directly dependent on the performance of these assets. In simpler terms, these securities are the building blocks of the Fund.

3. Expense Ratio
The fund managers charge a fee to manage your money, this is known as expense ratio. Of-course a high expense ratio will cut into your profits. For this reason, SEBI has restricted the expense ratio to 2.25%.

4. Economic Change
The state of the country’s economy and the government policies also impact the results of the fund. All investments in a booming economy are likely to flourish. Also, if the fund has invested in sectors that the government is promoting then the results are bound to be positive.

5. Cash Flow
A larger fund can diversify its portfolio and invest in a range of activities. This leads to a greater chance of profitability. In turn, a successful fund attracts more cash flow generating more choices for the fund manager to invest in.