The quantity of Mutual Funds allocated to you is called Units. In the last chapter we learned about NAV, we will understand the units allocated based on an example. Suppose you have a MF SIP of Rs25000 every month. The NAVs for these 3 months were January — 1141.42 February — 1171.64 March — 1082.22 We can calculate the units allocated…
NAV or Net Asset Value is an important concept in Mutual Funds. Most customers buy a mutual fund for a specific amount and for a specific period. For example, Rs25000 SIP every month. They are not really worried about the price of each unit and the number of units allotted. Since most MFs are linked…
Active means there is a direct involvement of labor & Passive means utilizing systematic or computer-generated instructions to do the stock pickings. “Buy index funds. It might not seem like much action, but it’s the smartest thing to do.” — Charles Schwab “The miracle of compounding returns is overwhelmed by the tyranny of compounding costs.” — John Bogle When…
Open-ended funds mean that the AMC accepts fresh inflow of money even after the launch date. Closed-ended funds on the other hand do not allow fresh investments. Close-ended funds have a predefined target, a clear maturity date, and an exit plan. Whereas open-ended funds are perpetual and the AUM keeps growing if the scheme is…
Every asset has a value. The value depends on not the seller, but the buyer. If you wish to sell your house for 1 Crore, but the highest a buyer is willing to give you is 0.75 Crore — then the value of the house is 0.75 Crore. When everything is going well, the same house may…
We hear people say Inflation is the rise of prices of products & services. Even though we feel the prices are rising, the technical definition of Inflation is the “Erosion of Purchasing Power”. AI Generated Image If your money bought 100 units of a commodity this year, it may buy only 95 units next year….
Nifty Analysis — Stance Bullish ⬆️ Recap from yesterday: “For tomorrow also we are continuing our bullish view and would like to go neutral if we get a close below 22615” Nifty had a gap up opening and was stuck in a narrow range till 13.11 after which it picked up decent momentum. Nifty almost gained 101…
There are more than 40 Asset Management Companies (AMCs) in India. Collectively they manage more than 54.54 lakh crores as of Feb 2024 (source). The total number of folios by retail investors is a whopping 13.95 crores. There are more than 2500+ Mutual Fund schemes available, which one will you choose? The answer is “Investment…
Mutual Funds were there from the start, but they became famous only after the Vanguard Group launched their passive schemes. The main reason their offerings became popular was due to lower fees & transaction costs. Earlier on people preferred to invest directly by buying stocks a.k.a. Equity. The advantage of Equity is that there are…
In the last chapter, we learned about the Assets that are available for Investment. In the current chapter, we will learn the precedence of which Asset Class to choose. You can think of this chapter as the practical class for the theory learned earlier. “Everybody has some information. The function of the markets is to…
