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November 2015
All of us know that investing in a
mutual fund today is a must. There are great investment benefits and you would
get certain tax benefits too. One of the key points you must follow when you
are investing in them the ‘net asset value’. This number represents the per
share market value of the fund you have chosen. In simpler words, it is the
price with which investors are bidding to fund shares from the company and also
to sell them too.
So, how do you derive this value
for a mutual fund? It is quite simple – you have to add the complete total of
cash and securities in the fund portfolio (the assets) and remove the
liabilities that are present. For example, let’s say a fund has the assets of 3
million and the liabilities of 2 million; then the NAV of the fund would be 1
million.
The computation of mutual fund NAV is calculated at the
end of every day and is of great importance to investors. You can also figure
out the real time NAV performance based on the traded fund series. In other
words, you can easily find out the price per unit of the fund, by dividing the
NAV by the number of outstanding units. This would be different from that of a
common stock that is in the stock market. While this is based on supply and
demand forces, that of the stock market is purely on market sentiment.
Using the NAV of a fund, you can
easily understand the present condition of the fund. You can also chart out a
series to figure out how the demand for the fund would be. You would not be
able gauge the performance of the fund though as it would be independent of the
NAV.
Giving your customer the chance to transact
seamlessly should be one of the top most priorities of every company. The customer
should have total control on how he is buying and should always have every
access to transact through it seamlessly. This is absolutely critical when you
are buying mutual funds too – you need to have complete clarity and be able to
know how you can transact with it at all times.
One of the simplest advantages with IDFC
mutual funds is just that. Here are the many ways you can transact once you
have made an investment.
1. Online transactions: With the internet
boom, one of the biggest advantages that have come by has been the way we
behave online. We want all our information on the internet and that is exactly
what you get with IDFC mutual fund investment once you verify PAN number,
mobile, bank account number and email address.
2. Mobile: We are all addicted to our
mobile phones and it gives us perfect reason to be able to transact through a
mobile friendly website. Track and view your statements within a matter of a
few taps on your phone. You can also get all information you need via SMS too, it
is that simple. These transactions are done with a pre-registration to ensure
security at all times.
3. Phone: The good old phone is a great way
to have your transactions verified too. Individual investors can track their
investments too this way.
The key to having complete control on your
investment is by ensuring you are aware of all the transactional insights and
that is possible when you use a reliable mutual fund like IDFC. Investing your
money into mutual funds is the best investment to make in every stage of your
career.
