A mutual fund is a financial intermediary in the capital market that pools collective investments in form of units from retail and corporate investors and maintains a portfolio of various schemes which invest that collective investments in equity and debt instruments on behalf of these investors. Mutual fund is an expert entity which helps an investor invest in equity and [...]
The investor who invests in mutual fund units can receive returns in the following two ways: 1. Capital Appreciation: Profit earned on sale of units at a higher NAV than the original cost. 2. Income Distribution (Dividend ): When a fund makes a profit on its investment, this profit will be given to investor as a dividend which can be [...]
The performance of a particular scheme of a mutual fund is denoted by net asset value (NAV). As defined in the AMFI booklet, 'net asset value' is the market value of the assets of the scheme minus its liabilities. The per unit NAV is the net asset value of the scheme divided by the number of units outstanding on the [...]