How to Calculate Mutual Fund Performance and Returns?

As we progress through our career and financial goals, there would come a time when you are required to take informed decisions on financial planning. Each time, you would have to take a call on the evaluation of the investment and how well you are planning it out. Yes, there has to be a diversified approach to your investment, but having a constant watch over the growth is a must.

Mutual funds are a common choice by many to plan out their investment for a long period. Equity based funds almost always beats other investment forms in the market today. To evaluate the performance of your fund, it is important to keep a benchmark. This benchmark will and must always give you an idea of exiting or progressing ahead.   

So, how would you go about this? Here are a few simple methods –

1.       Absolute return: The two most important dates with respect to an investment are – the beginning date and the end of the holding. This is calculated by the dividing the absolute change in the NAV from the investing period and the NAV during the start of the investment. The simplest advantage is that we can use this calculation on any kind of fund to track out the return. (NAV(end) - NAV(start))/NAV(start) would give you the percentage increase.

2.        Total return in fund: Another method to calculate the total return that has come from the fund is to include the dividends that are in place too. This can be calculated by adding the dividends which are spread across the holding period and with the total change to the NAV, divided by the NAV at the initial day. {Dividends +[NAV(end) - NAV(start)]}/NAV(start)

With these calculations, the mutual fund performance can be tracked and you would be able to know when the fund is performing well as per your ‘benchmark’.

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Know the NAV of your Mutual Funds Before you Invest

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.

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Keeping a Transaction Simple is Easy Now – Using IDFC!

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.

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The Simple Benefits of Investing in Mutual Funds in India

Aren’t we all bogged down about the different investment options that are available for us? One of the first things that come to our mind when we are thinking about making investments is mutual funds. There are many benefits and most of them are way better than investing in any other form.  Well, here are simple financial gains you can get out of investing in them –

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1.       Beat Inflation: Without having to think too much, you can beat inflation and hence get good returns. Instead of having to put your money into the standard saving accounts in your bank, you can make your money grow via mutual funds. While you invest in the savings account of your bank, you get just about 6% interest – that does not beat inflation which is close to 10% on an average. So, mutual funds would always be a smarter investment as compared to a basic bank investment.

2.       The Convenience Factor: As compared to investing in the stock market or even real estate, investing in mutual funds is a lot easier. There is a lot of documentation when you are going to invest in real estate or the stock market – on the other hand, investing in mutual funds in India is really easy. Not too much documentation or details to be shared.

3.       Tax Saving Benefits: the biggest advantage you get by investing in mutual funds is that you get tax exemptions from the government too. That means you are able to save money apart from the growth that comes your way. Completing the limit of your tax exemption is a must of a goal and you can do that easily by investing smartly.

4.       Cost Factor: With all the investment points that are present in the market today, you need to be very choosy about where you put your money. It does require a lot of research, but especially if you are putting larger sums of money. This is the case with real estate especially – the cost of investment is really high. When it comes to mutual funds though, your costs are lower and thus, it is affordable.

5.       It’s a Mixed Basket: It is never advisable to put all your money into a single point of investment. You need to keep your investments as diversified as possible and thus you have a wide array of assets. There are plenty of short, medium and long term options that are virtually tailor made for you.

6.       Accessible Investments: Unlike how you get stuck with many investments – stock market, real estate or even gold, mutual funds can be liquidated any time. There are many schemes that can be used based on the net asset value at any time.

7.       Crystal Clear: One of the best advantages you get with mutual funds is that you always aware of the investment value and growth. Plus, each mutual fund is regulated by SEBI and that guarantees that your money is kept in the right place.

There is no doubt that there are plenty of benefits when you make smart investments. The entire idea is to plan the money you have saved towards mutual funds. Not only would you be saving money, you would be making money.

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Why your credit card could be your biggest saviour!

Life does provide us with quite a few complications and a few of them can be sorted out with the help of money. We have constant challenges in life – a medical emergency, or an unexpected expense and most of the time, we are left wondering how we can make ends meet. Well, if you have been in a situation like this in the past and have been left wondering how you can get the better of it – you need a credit card.

With the power of a credit card, you would be able to get a health credit period of at least 40 days. This leaves you with the strength of spending today and paying tomorrow. It would solve the immediate need for a cash payment and give you the benefit of paying at an extended date.

The cycle of credit is something that you need to look at very carefully when you are choosing a credit card and also the credit payment facilities – most good banks like Indus Ind bank allows you to clear the payment in multiple methods like online transfers and even from ATMs. With a credit cards facility, you would be able to manage your savings in a much better fashion.


You also stand to have joining bonuses and cash back offers among the many offers when you sign up for a credit card. Get discounts at restaurants, cash back when you book movies or flights and even have fuel surcharge waived off. No two ways about it, a credit card can give you some amazing benefits.

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