#MoneyArth

Mutual funds have been gaining a lot of popularity in the recent past as an effective investment channel. Choosing the right type of fund for your investment needs will depend on your investment goal. The most popular types of mutual funds in India are listed below: Equity funds Debt funds Money market funds Index funds Balanced funds Income funds Fund of funds Specialty funds There are several other types of funds offered by the asset management companies in the country. We have segregated the same based on structure, asset class, investment objective, specialty, and risk, in the sections below. Types of Mutual Funds based on structure Open-Ended Funds:  These are funds in which units are open for purchase or redemption through the year. All purchases/redemption of these fund units are done at prevailing NAVs. Basically these funds will allow investors to keep invest as long as they want. There are no limits on how much can be invested in the fund. They also ...

Popular misbeliefs that investors have about SIPs and what the truth is There is no denying the fact that SIPs are gaining popularity, with many investors taking to them. That's good news certainly as SIPs optimize your investment returns. But rising popularity of anything also results in many misconceptions about it. Because many investors have learnt about SIPs from others, they may have not taken the time to appreciate their true nature. What's more, when such investors go ahead and 'counsel' others about the need for SIPs, these misconceptions, or myths, get reinforced. Here we discuss four popular myths that people have nurtured about SIPs and what the truth is. Investing 'in' SIPs:  If you ask a novice SIP investor about where he is investing, an interesting answer comes: 'I am investing in SIPs'. Well, if you ask which fund it is, the investor has little idea. If he does remember something, it's not the name or the category ...

Learn how net asset value (NAV) works and find out whether a low NAV is all it's made out to be Mutual fund investors inevitably come across the abbreviated term 'NAV'. No matter how hard they try to keep investment jargon at bay, this is one term that keeps cropping up (for instance, when buying and selling mutual fund units). It is not surprising then that there are many misconceptions about what it means. As a mutual fund investor, knowing what NAV is and what it entails is certainly helpful. The NAV formula NAV, or net asset value, is the sum total of the market value of all the shares held in a portfolio, including cash, less liabilities, divided by the total number of units outstanding. Thus, the NAV of a mutual fund unit is nothing but the 'book value' of a unit. Is a low NAV good? One often comes across investors who feel that a fund with a low NAV is 'cheaper' than one with a higher NAV. Furthermore, at the tim...