Not all people have the expertise and time to build an investment portfolio. For such people there is an excellent alternative – mutual funds. A mutual fund is an investment intermediary that allows a group of people to pool their money together and invest with a predetermined objective in mind. Every investor in a mutual [...]
The Net Asset Value is the fund’s share price. The NAV is calculated by dividing the current value of the portfolio by the number of fund units (shares) outstanding. NAV for most funds is calculated on daily basis and is available in daily financial papers. Suppose there are three investors in a mutual fund – [...]
Load (for Mutual funds) can be defined as a fee or a commission that an investor has to pay to the mutual fund company at the time of buying or redeeming the shares of the mutual fund. If the fee is charged at the time the investor buys the shares, it is known as the [...]
The smart investor knows where his money is going. For an investor of mutual funds, it is necessary to understand it expenses. These expenses have a direct impact on the funds’ performance and should not be overlooked. All mutual funds have certain expenses that are met from the capital invested in their funds. The ratio [...]