Mutual Fund at Glance

MUTUAL FUNDS- AT A GLANCE Introduction If we break the phrase mutual bullion and analyze the words, we realize that it refers to depots that are raised and invested mutually, i.e. on behalf of everyone participating in the system. If you and your friend both pool your gold and invest it jointly, you have created your own mutual depot. So,a Mutual storehouse is a trust that pools the savings of a number of investors who cover a common financial goal. The money thus store is thence invested in capital grocery instruments such as shares, debentures and other securities. The income earned through these investments are shared by its unit holders in proportion to the number of units owned by them. Every Mutual Fund is managed by a fund manager, who using his investment management skills and necessary research whole works ensures much better return than what an investor can manage on his own. When an investor subscribes for the units of a mutual fund, he becomes part owner of the assets of the fund in the same proportion as his contribution keep down put up with the corpus. Working of a mutual fund ordinary terms used: NAV: The performance of a particular scheme of a mutual fund is denoted by Net addition Value (NAV).

Net Asset Value is the commercialise judge of the securities held by the scheme. Since market value of securities changes every day, NAV of a scheme also varies on day to day land. The NAV per unit is the market value of securities of a scheme divided by the arrive number of units of the scheme on any particular date. For example, if the market value of securities of a mutual fund scheme is Rs two hundred lakhs and the mutual fund has issued 10 lakhs units of Rs. 10 each to the investors, then the NAV per unit of the fund is Rs.20. NAV is required to be disclosed by the mutual funds on a regular basis - daily or weekly - depending on the type of scheme. launching load/Exit load :This is the money you have to pay up the AMC while you enter the scheme or exit the... If you want to get a full essay, order it on our website: Orderessay

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