Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
Infrastructure Bond Application Forms Download Applications

Thursday 21 December 2017

NAV of Mutual Fund Scheme




First time investors into mutual funds are often confused with the term Net Asset Value (NAV) wondering whether they should be buying a fund with higher or lower NAV.

Is it better to buy a fund which has a lower NAV?

Investing in mutual funds is different from stocks. When you buy mutual fund units the NAV , is calculated on the basis of the current market price all the as sets that the mutual fund owns. It represents the fund's intrinsic worth. Financial planners suggest it is irrelevant how high or low the NAV is. If the amount of your investment re mains unchanged, and two comparable funds have identical portfolios, a low NAV would result in the investor being allocated a higher number of units held and consequently a high NAV would mean lower number of units allot ted. In both the case, the value of your investment, would be identical. Going ahead, the stocks present in a portfolio and their subsequent movement deter mine returns from a fund, making the value of the NAV immaterial.

Similarly when one re deems or sells those units, the return will be the same as that of another scheme, which has performed similarly .

Is it better to buy a new fund offer (NFO) priced at Rs10, and schemes with NAV below Rs10?

In case of a new fund offer (NFO), understand if the prod uct on offer matches your risk profile, what the mandate of the scheme is, the pedigree of the fund house, its past performance and the experience of the fund manager.Similarly it is not wise to invest in an existing mutual fund scheme just because it is available below Rs10.Evaluate if it fits into your portfolio and understand what has gone wrong for the scheme to be below Rs 10 before investing.

NAVs of direct plans are higher than that of regular plans. What should you do?

NAVs of direct plans will always be higher than that of regular plans as these schemes do not pay a commission or fee to distributors, and consequently have a lower expense ratio. Understand if direct plans are meant for you and if you can handle your investments without the support of distributors or advisors. Buying into a direct plan means you have to choose your fund yourself, understand if it fits into your portfolio, do the entire paperwork related to the transaction and monitor it on your own on a regular basis.








Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds

Top 10 Tax Saver Mutual Funds for 2017 - 2018

Best 10 ELSS Mutual Funds to invest in India for 2017

1. DSP BlackRock Tax Saver Fund

2. Invesco India Tax Plan

3. Tata India Tax Savings Fund

4. ICICI Prudential Long Term Equity Fund

5. Birla Sun Life Tax Relief 96

6. Franklin India TaxShield 

7. Reliance Tax Saver (ELSS) Fund

8. BNP Paribas Long Term Equity Fund

9. Axis Tax Saver Fund

10. Birla Sun Life Tax Plan



Invest in Best Performing 2017 Tax Saver Mutual Funds Online

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms


For further information contact SaveTaxGetRich on 94 8300 8300

------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300



 

No comments:

Post a Comment

Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
Infrastructure Bond Application Forms Download Applications

Popular Posts

Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
Infrastructure Bond Application Forms Download Applications