The investor who invests in mutual fund units can receive returns in the following two ways: 1. Capital Appreciation: Profit earned on sale of units at a higher NAV than the original cost. 2. Income Distribution (Dividend ): When a fund makes a profit on its investment, this profit will be given to investor as a dividend which can be [...]
The following article will guide you about how to calculate entry load and exit load on mutual funds. A Load Fund is one that charges a percentage of NAV for entry or exit. That is, each time one buys or sells units in the fund, a charge will be payable. This charge is used by the mutual fund for marketing [...]
This article throws light upon the top nine advantages of mutual fund. The advantages are: 1. Diversification 2. Expert Supervision and Management 3. Liquidity 4. Reduced Risk 5. Tax Advantage 6. Low Operating Costs 7. Flexibility 8. Higher Returns 9. Investor Protection. Advantage # 1. Diversification: A large number of investors have small savings with them. They can at the [...]