Investing

What are Debt Funds & Types of Debt Funds. If you are new to the world of investing and looking for options, it is better that you take some time out and first identify the primary purpose of your investment. That’s because the financial industry is swamped with the end number of investment products, catering to the needs of almost every individual. Thus, having a realistic goal be it short term / long term, might help an investor in choosing an investment that may hold the potential to support their investment objective. Understanding one’s risk tolerance is equally essential because the schemes available in the market vary according to the amount of risk they carry. Although it is true that no investment is considered to be risk free investment, you might be able to decide at least whether you want to settle with nontraditional investment methods or opt for a more aggressive approach through investments like mutual funds. What are mutual funds? Securities and Exchange Board of In...

 Understanding NAV is crucial for any mutual fund investor as it helps in assessing the value of their investment and making informed decisions. NAV is typically calculated at the end of each business day after the market closes. This daily calculation provides a snapshot of the fund’s value, which fluctuates based on the performance of your investment assets. Now let us understand the concept first and then simplify it! What is NAV in Mutual Funds? This is the question you may have avoided many times as you must have thought that is not something you have a control. NAV represents the per-unit price of a mutual fund. It is calculated by subtracting the total liabilities of the mutual fund from its total assets and then dividing the result by the number of units outstanding. Hence, NAV is the book value of each unit of the mutual fund. Importance of NAV in Mutual Funds  🔸Pricing NAV is crucial because it determines the price at which investors buy or sell units of the mutual ...