Observing people stay updated with financial news and explore different investment websites is common. There are many ways of looking at past and present data when it comes to picking investment products, especially within the vast array of mutual fund schemes, offering thousands of options across various categories. As markets perpetually cycle, new frontrunners emerge, often leading retail investors on a perpetual chase, only to find a different category or set of schemes outperforming in the next cycle.

Primarily, the focus should shift from chasing chart-toppers to constructing a portfolio aligned with financial goals. Rather than fixating on returns, the emphasis should be on goal-based investments. Concentrating on controllable factors such as expenses, savings, earnings, and increasing Systematic Investment Plans (SIPs) proves more beneficial than attempting to ride unpredictable market waves.

Secondly, investing in well-regulated products becomes crucial. The enforcement of regulations serves as a deterrent against fraud, ensuring the safety of investments.

Thirdly, evaluating the ease of investment and redemption in products is vital. Investments should align with future financial needs, making it imperative to scrutinize the exit clauses and ensure they align with specific financial goals.

Lastly, assessing the overall costs involved in an investment is essential. This encompasses purchase cost, administration cost, management cost, exit cost, and taxes. A thorough comparison of returns, factoring in these costs, aids in making informed investment decisions.

By adhering to this straightforward framework when selecting investment products, investors can narrow down their choices to a select few, simplifying the decision-making process.

Navigating the portfolio through market cycles proves challenging, with the difficulty of predicting future winners and associated costs like exit loads and capital gains. So, what constitutes the optimal approach to building a robust investment portfolio?