This paper will discuss as to which mutual funds to be purchased from the available funds of $95000 and what criteria is used to purchase the same. Mutual Fund Purchase Decision One of the funds to be purchased with the available funds is High Dividend Equity Fund which tracks the performance of Morningstar Dividend Yield Focus Index.1 This fund is a relatively new fund and was launched during March 2011 however; one of the key reasons at to why this fund is picked is its low expense ratio. The overall expense ratio is 0.4% with no acquired fees and expenses. A low expense ratio is one of the key criteria to decide about purchasing a mutual fund though it is not the only criteria. (Barker, 2011). Further, the overall holding of the funs is in sectors which are relatively stable and provide regular dividends. Since its inception, fund has earned a total return of 4.39% whereas index returned 4.52%. 50% of the funds will be used in the purchase of this fund. Another fund to be purchased with the available funds is the MSCI BRIC Index Fund which tracks this index2.