Saturday, 3 December 2016

What is NAV in Mutual fund

NAV(Net Asset Value)-Net asset value is
                                       
                                             Market capitalisation - Total liblities
                                               ___________________________
                                                 Total number of outstanding shares

Units=     Invested Amount
              -----------------------
                    NAV

AUM(Asset under Management) -AUM is total Invested amount in a particular scheme of Mutual fund or AMC(Asset Management company)

AMC-Mutual Fund company is better known as AMC(Asset Management company).

Switch-Switching of the whole amount/units or partial amount/units of a scheme to a different scheme of the Same AMC(mutual fund company ).

For Example switching all units of DSP Blackrock Equity Fund to DSP blackrock Micro cap fund.
or Switch of all units of SBI Balance Fund to SBI Midcap fund.

Switching of DSP Blackrock Equity Fund to SBI Midcap fund not allowed.

Dividend Reinvestment-Dividend reinvestment is the option where amount which was delcleared as diviend in a particular scheme is again reinvested in that particular scheme,units of that amount is
repurchsed.

Dividend Payout-Dividend amount which was delcleared as diviend in a particular scheme is directly credited in you bank account.

Growth option -It is the option in which the Invested amount keeps on growing until and unless you redeem the amount.




No comments:

Post a Comment