Mutual Funds: Try Kiya Kya?

The concept of Mutual Funds or understanding the financial instrument called Mutual Funds and their mechanisms may come across as complex to many individuals. However this book has been written to act as a one-stop solution to understanding the concept of Mutual Funds and make it simple for everyone that goes through the book. When a large number of investors contribute a large sum of money that money kept together is known as a Mutual Fund. It is headed and taken care of by a professional fund manager. Mutual Funds are not one-dimensional and have several tidbits to understand. People might want to invest in several asset classes like stocks bonds securities etc. but it is challenging to take care of all these assets by oneself and track them properly. In order to alleviate such problems there has been an innovation called Stock Funds that are investing techniques. In Stock Funds you regroup your money with other investors to create a portfolio of securities bonds etc. in one place. Stock Funds help you realize the portfolio of various financial asset classes which would be highly difficult to replicate oneself. How to calculate the price of a Mutual Fund unit? The multiple asset classes form a portfolio which has been frequently discussed here as the same. When you divide the entire cost of the securities in the portfolio by the number of shareholders’ equity including yours it determines the Mutual Fund’s price. This is known as the Mutual Fund’s Net Asset Value (NAV). How to determine the NAV/price of the Mutual Fund’s unit at the end of each business day?