what are mutual funds ? what is nav – net asset value ? all you wanted to know about mutual funds …

stock exchange board

mutual funds are basically companies that pool money from a group of investors – individual or corporate

you can invest in mutual funds either a lump sum or a systematic investment plan

the mutual fund unit is called NAV – net asset value – this value moves up or down daily with the movement of the stock market

if you buy the units through a systematic investment plan ( SIP ) , you will average the value of a period of time

in mutual funds , you are better off investing for the long term – 10 years or more

the mutual funds charge fees through entry , exit and management fees ( this is typically every year ) for managing your money – the salaries , expenses for mutual funds are paid through this

if you prefer not to pay these fees , you can invest in low cost index funds – they mimic the movement of the stock market index

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