How to Avoid Investing in the Wrong Mutual Fund

Even though there is extensive information available to evaluate mutual funds and their managers from multiple aspects, it is human nature to pick the fund that performed the best in the most recent time period. This is unfortunate, as this month's best performing funds can easily be the worst performing funds next month. Then human nature kicks in again and the reflex reaction is to sell the fund. This leads investors to a predictable trap of buying high and selling low. One way to avoid the trap of investing in the wrong fund is to look at:
-Consistency
-Relative vs. absolute performance
-Peer performance
-Performance over cycles.
-Personal investment