The way investors fall over each other to lap up NFOs (New Fund Offers) of mutual funds, it is very obvious that the meaning of NAV of mutual funds remains misunderstood. How is the net asset value NAV of a mutual fund unit calculated is very important to know so that you can understand the dynamicsRead More
basics of mutual funds
How many mutual funds should you invest in ?
Have you ever asked yourself how many mutual funds you should own ? In an earlier article, we saw the rational behind how many stocks one should own. Let us check in a similar way, how many mutual funds one should have. Whenever you think finance, think simple. Remember that complex financial products do notRead More
Systematic Investment Plan (SIP) of mutual funds
By now, you must be tired of hearing me say why everyone should invest in equity – stocks and mutual funds. Investing in the latter is best done by something called SIP. If you were to take the usual more often followed route to riches in the stock market, you would probably try to timeRead More
Types or Classifications of Mutual Funds
There are different types of mutual funds in India available in the market which an investor can choose depending on his profile, risk taking capacity and time horizon. The classification of mutual funds can be done on either the investment objective or on structure of the mutual fund. Let’s go through each one of these classificationsRead More
What are the advantages of Mutual Funds ?
In an earlier article, we have seen what mutual funds are. Today, we see what the advantages of mutual funds in India are. Mutual Funds offer a great deal of flexibility and ease to investors, both big and small. Ranging from professional management to a plethora of diversification options, to ease of liquidity and lowRead More
What is a Mutual Fund ?
A Mutual Fund in India is an entity which pools in people’s money and invests in stocks, bond and other securities to generate a return. Each investor is given units of the mutual fund in exchange for cash – he then becomes an owner of the fund’s asset. The entity which does the collection andRead More