What advantages do mutual funds offer over equity stocks?
Here are a few considerations : Diversification : Most mutual funds spread the money over a number of shares depending on the fund size. This lowers the risk from an…
Here are a few considerations : Diversification : Most mutual funds spread the money over a number of shares depending on the fund size. This lowers the risk from an…
Net asset value on a particular date reflects the realisable value of a mutual fund’s portfolio in per share or per unit terms. It is the worth of an investment…
A mutual fund collects money from various investors, and then invests this pool in various financial instruments. The fund managers attempt to generate returns superior than what the investors themselves…
Just like any other financial instrument, mutual funds are not without risk. When defined in terms of chances of losing money, the risk in mutual funds is no different than…
The asset management company (AMC) that manages your mutual fund has to spend on people, technology and infrastructure to generate returns. So it recovers part of this regular expenses from…
A few tips : Acquaint yourself with the fund manager’s investment philosophy. Compare the returns he or she has generated on funds previously managed against funds with similar objectives. Both…
The schemes or funds (often used synonymously) can be classified as : Growth Funds : They promise pure capital appreciation with equity shares. They buy shares in companies with high…
It is important know that the NAV and the market prices of close-ended schemes are never the same. Close-ended schemes always trade at a discount. What explains this discount? And…
A mutual fund can be either open-ended or close-ended. The difference between the two is in the way each operates after the new fund offering. A close-ended scheme operates like…