Sunday 13 November 2011

Mutual Funds

What are mutual funds?
Mutual fund is an investment option that pools savings of various investors with a common financial goal.  The funds collected will be managed and invested wisely by a person called fund manager.  Fund manager does a market research and invests the money in different sectors in order to yield returns and distribute it among the investors.  The investors get returns in 2 methods, one is dividend method and the other is growth method.  The money invested by the investor will be converted into number of units depending on the net asset value (NAV).  For example, Rs. 10,000 is the investment amount and Rs. 10 is the unit price at the beginning of a new mutual fund offer i.e., New Fund Offer *(NFO).  So, now the number of units will be 10,000/10 = 1000 units.  The investor gets returns on the appreciation of unit price i.e., Rs. 10, Rs. 12, Rs. 14, etc.  For example, if the current NAV or unit price is Rs. 18, then the current value of investment is Rs. 18*1000 units = Rs. 18000.  This method of returns is called as growth method.  The other type of returns is dividend method, where the fund manager declares a percentage of profit made and which will be distributed on a percentage wise to all the investors periodically.

2 comments:

  1. Allow me to introduce the LE-MERIDIAN FINANCING SERVICES. the loan company that grant me loan of 5,000,000.00 USD When other loan investors has neglect my offer but Le_Meridian Funding Service grant me success loan.they are into directly in loan financing and project  in terms of investment. they provide financing solutions to companies and individuals seeking access to capital markets funds, they can helped you fund your project or expand your business.. Email Contact:::: lfdsloans@lemeridianfds.com Also  lfdsloans@outlook.com or Write on whatsapp Number  on    1-(989-394-3740)Good Intend,

    ReplyDelete
  2. Here is Mr Benjamin contact Email details,lfdsloans@outlook.com. / lfdsloans@lemeridianfds.com Or Whatsapp +1 989-394-3740 that helped me with loan of 90,000.00 Euros to startup my business and I'm very grateful,It was really hard on me here trying to make a way as a single mother things hasn't be easy with me but with the help of Le_Meridian put smile on my face as i watch my business growing stronger and expanding as well.I know you may surprise why me putting things like this here but i really have to express my gratitude so anyone seeking for financial help or going through hardship with there business or want to startup business project can see to this and have hope of getting out of the hardship..Thank You.

    ReplyDelete