What is Mutual Fund NAV ? | Mutual Funds Investment Online India | Best Mutual Funds to Invest

What is Mutual Fund NAV ?

 

Wealth management has become the need of the hour. And one such instrument which we could use in managing and growing our unused money with low risk is through mutual funds. But, What is a Mutual Fund and What is Mutual Fund NAV?

We will be running you out through various aspects of Mutual Funds like What is Mutual Fund NAV ? And How to do Mutual Funds Investment Online India and we will also suggest Best Mutual Funds to Invest. We will also be discussing various Indian platforms to invest in Mutual Funds online with some Best Mutual Funds to Invest in.

A Mutual Fund is basically a type of financial vehicle which collects money from several investors and then invests in stocks, bonds, and various other assets. This collected pool of money is invested by finance professionals into stocks or money market instruments which are in line with the objective of investors and Asset Management Company’s investment mandate. Mutual funds are operated by professional money managers and the whole objective of the mutual funds is to produce capital gains for the individual or the institutional investors through investing in portfolios of bonds, equities, and various other kinds of securities.

Mutual funds simply provide excellent opportunities to individual investors who don’t have much experience and knowledge about stocks and securities by providing them with well-managed portfolios. Here an investor with minimal or no knowledge with the Best Mutual Funds to Invest which can be as low as rupees 500 for India and some bucks for other countries can get expert managed portfolios to invest in and get to be a part of collective return which the scheme generates. By investing in mutual funds the investors acquire fund units that are proportional to the amount of their investment and so are their returns.  Unlike stocks, mutual funds do not invest just in a particular share but on wide-ranging investment options to maximize the returns. Here the investors do not have to worry about researching and finding well-performing options to invest instead they are provided with expert managed sets of stocks that are compiled by market analysts and researchers. Hovering below we will also share with you the aspects of Mutual Funds Investment Online India and Best Mutual Funds to Invest.

 

What is Mutual Fund NAV ?

Mutual funds can be divided into various categories, representing how they invest and aspire to seek returns such as equity funds, debt funds, money market funds, and other hybrid funds. So when you buy a share of a particular mutual fund you are investing in that particular portfolio and your returns depend on how those particular sets of stocks and securities perform. Mutual funds shares are different from stocks shares as the ownership on voting rights of the shares in case stocks lies with the investor but in the case of mutual funds, there are no voting rights because unlike stocks mutual funds do not invest in a single stock. This is the reason why the value per share of the fund is referred to as NET ASSET VALUE per share (NAVPS).

 

So the answer for What is Mutual Fund NAV is that Net asset value (NAVPS) per share is calculated by dividing the net value of securities or stocks in the particular portfolio by the total number of outstanding shares. These outstanding shares consist of shares held by institutional investors, company officers, and other insiders.  The mutual fund's shares are bought and sold at current NAVPS because NAVPS does not waver during market hours as stock share prices do. Every day at the end of the trading day, the mutual funds NAVPS is settled.

 

But how does a mutual fund company earn money for you? The Mutual Funds Investment Online India company here is an investment company that earns dividends on stocks and interests on bonds which are passed onto the investors as profit. The company can also make a profit by selling the shares which have increased in value. Most of these Best Mutual Funds to Invest are part of a much larger investment company. These large investment companies may have more than 100 mutual funds under them. A mutual fund might hold over a hundred different kinds of securities so that a shareholder of the fund gets great diversification at very low cost and low risk.

 

Mutual Funds Investment Online India

 

Why and When should we Invest in Mutual Funds?

 

After understanding that What is Mutual Fund NAV now we will focus on why and when should we invest in Mutual Funds. Investing in mutual funds comes with a lot of pros. Firstly you get expert managed securities to invest in and be a part of the collective profit that too with much ease as with most of the Best Mutual Funds to Invest, there are no lock-in periods wherein you have to wait till the lock-in period is over before you can withdraw. The expense ratio on investors taken by the companies is very less as it is mandated by The Securities and exchange board of India (SEBI) and has to kept below 2.5%. The investment can be made in the form of SIPs (Systematic Investment Plans) whose frequency can be monthly, quarterly, or bi-annually as per your ability. The diversification of classes of securities and stock shares allows concentration risk reduction to a great extent.

 

    Why not do Mutual Funds Investment Online India when it gives you a great amount of flexibility, here you can invest and accumulate emergency funds because there is no lock-in period and the investor can enter or exit the mutual fund at any time. Due to this liquidity of mutual funds is higher too; when you come out with a redemption request the company sends your money to the account in 3-7 days. Also, these companies are well regulated by SEBI and RBI (Reserve Bank of India) and work under its guidelines and there is also a self-regulatory body of AMFI (Association of Mutual Funds in India) which governs fund plans, hence the money invested in mutual funds are safe from fraudulent cases. Through making an investment in ELSS Equity-Linked Savings Scheme, which provides tax deductions we can save up to Rs 1, 50,000 a year under the Section 80C provision (ELSS does come in with a lock-in period of 3 years). By investing in mutual funds through SIP you get the benefits of rupee cost averaging and also there is no need to time the market because you only buy more when the prices are low.

Coming to the point on when to Mutual Funds Investment Online India, the major forces hovering on the decision on when to invest will be the availability of funds, the condition of the market, and the nation’s economic condition. But if you are investing systematically then you can start investing now itself and to derive maximum profit you should stay invested as long as possible to the Best Mutual Funds to Invest. Also you should understand that you need to be an intelligent investor who should be knowing that What is Mutual Fund NAV and how to invest and when to invest for locking better profits.

In India first mutual fund started way back in 1964. A company named Unit Trust of India was established to pool savings of small investors and channelizes them to produce profits. UTI brought numerous schemes to benefit every kind of investor small, medium or large.

Since then the sector Mutual Funds Investment Online India has grown multifold. The industry reported an Average Assets Under Management (AAUM) of Rs. 23.16 trillion as of February 28, 2019. The AUM of the industry stood Rs. 5.09 trillion on February 28, 2009, which means that the Indian mutual fund industry has cataloged a more than 4.5 fold increase in a period of 10 years. There are more than 43 AMFI (Association of Mutual Funds in India) registered funds houses offering more than 2,500 mutual fund schemes. Often these wide ranges of fund houses confuse less experienced investors so I will also tell you about a few of the biggest and trusted fund houses and Best Mutual Funds to Invest in India towards the end of the article.

 

Types of Mutual Funds in India

Types of Mutual Funds Investment Online India

A/c to SEBI, mutual funds can be broadly categorized into 3 sections – Equity Funds, Debt Funds, and Hybrid Funds.

Equity Funds: 

A mutual fund that invests a minimum of 65% of its assets into equity and equity-related instruments. The balance of 0%-35% can be invested in debt or money market securities. Equity funds generally come with high risk and high return quotient as equity funds are invested in stocks of companies that respond to the changes in the stock market.

Debt Funds: 

A mutual fund that invests a majority of its assets in debt and money market securities or a mutual fund that invests less than 65% of its total assets in equities is termed as a debt fund. Debt funds are preferred over equity by investors because they come with a relatively lower risk gradient.

Hybrid Funds:  

A mutual fund that invests in two or more asset classes including equities, debt, gold, overseas securities, etc. Generally, they invest in only two asset classes i.e. equity and debt. The composition of equity and debt enables a hybrid fund to generate returns mostly similar to those generated by equity funds while facing relatively lower risk gradients like debt funds. This type of Mutual Fund is the Best Mutual Funds to Invest in.

 

 

Top Apps for Mutual Funds Investment Online India

 

By doing Mutual Funds Investment Online India we can generate wealth in the long run and with online Apps, it has become much easier than before. But with so many applications choosing the right one becomes tedious work, so here I will be telling you about some apps which are currently best in their category and provide one-stop solution to investing.

  

ET MONEY by TIMES NETWORK (ANDROID/IoS) this app is really user-friendly and light. It is easier for even the new investors to navigate and understand their investments.

The platform has a fully automated framework. It also offers personal finance strategies dedicated to your personal financial goals. Not only that but you also get to access a wide range of financial services such as buying insurance policies, loans, direct mutual fund investments through SIP, and much more.

 

GROWW App (ANDROID/IoS) comes with a simple user-friendly interface made for investors who are at the very early stage of the investment process. This app is backed by a huge database of learning videos and fresh blogs to teach you investing strategies and techniques. With growth, you can also start trading in stocks as it also plays a role as a stock trading platform. The registration is simple, with an easy one-step KYC for account creation, 128 bit SSL encryption ensures all your transactions are secured

Paytm Money Mutual Funds App (ANDROID/IOS) one of the best apps for Mutual Funds Investment Online India where you can get 1% higher returns by investing in their direct plans through Paytm money. There are no extra charges as all the buying and selling is done with Paytm money. Hence no hidden charges so extra profit generation. The KYC verification process is 100% paperless and account opening is blazing fast and can be set up in under 30 minutes.

Kuvera (ANDROID/IOS) another great application for beginner-level investors with the user-friendly framework. One great feature about the application is that it lets to set up your own goals and then suggests investment according to them. Gives you a one-stop tracking dashboard to track your investment performance. Here you can also get a family account to manage for joint family investments.

CashRich (ANDROID/IOS) was the first app to give dynamic SIP investment options which ensures much higher returns than regular SIP. Lifetime free account, no account opening, transaction, or maintenance charges to pay. Account opening is easy and fast .There is customer support available 24*7. It is also a better option for Mutual Funds Investment Online India.

 

Best Mutual Funds to Invest

 

10 Most Popular and Best Mutual Fund Houses to Invest in India

The information is on the basis of assets under management AUM report

1.           SBI Mutual Fund (₹5,05,373 Cr)

2.           HDFC Mutual Fund (₹4,16,670 Cr)

3.           ICICI Prudential Mutual Fund (₹4,16,198 Cr)

4.           Aditya Birla Sun Life Mutual Fund (₹2,69,700 Cr)

5.           Kotak Mahindra Mutual Fund (₹2,34,743 Cr)

6.           Nippon India Mutual Fund (₹2,30,222 Cr)

7.           Axis Mutual Fund (₹1,96,862 Cr)

8.           UTI Mutual Fund (₹1,82,853 Cr)

9.           IDFC Mutual Fund (₹1,22,328 Cr)

10.         DSP mutual fund (₹97,386 Cr)

 

 

Best Mutual Fund to Invest of these Fund Houses

1.           HDFC Liquid Fund ( debt scheme)

2.           ICICI Prudential Liquid Fund (debt scheme)

3.           Aditya Birla Sun Life Liquid Fund (debt scheme)

4.           HDFC Balanced Advantage Fund (Hybrid scheme)

5.           ICICI Prudential Balanced Advantage Fund (Hybrid scheme)

6.           SBI Equity Hybrid Fund (Hybrid scheme)

7.           Kotak Standard Multicap Fund (equity scheme)

8.           Aditya Birla Sun Life Frontline Equity Fund (equity scheme)

9.           HDFC Mid Cap Opportunities Fund (equity scheme)

10.         HDFC Equity Fund ( equity scheme)

 

 

 

We have taught you about What is Mutual Fund NAV and various aspects of Mutual Funds Investment Online India. Also we have provided knowledge on the types of Mutual Funds and Best Mutual Funds to Invest in India. So you need to choose your Best Mutual Fund to Invest and also need to hold it long term with consistency which will be definitely give you results.