Mutual Fund Basics
Understand mutual funds from scratch — how they work, types of funds, NAV, costs and how to invest in India.
- How is NAV Calculated for a Mutual Fund? The Net Asset Value (NAV) of a mutual fund is calculated by taking the total value of all its assets, subtracting all its liabilit…
- Can a Mutual Fund Go to Zero? While a mutual fund can lose value, it is practically impossible for it to go to zero. This is because a mutual fund is a diversif…
- Can I Lose All My Money in a Mutual Fund? Losing all your money in a mutual fund is extremely rare because funds hold diversified portfolios of many securities and are tigh…
- What Happens to My Mutual Fund After I Die? When you die, your mutual funds are transferred to your nominated beneficiaries or legal heirs. The process is much simpler and fa…
- Mutual Fund vs NPS — Which Builds More Wealth by Retirement? Mutual funds, especially equity-focused ones, generally offer higher wealth building potential due to greater market exposure. NPS…
- How Mutual Funds Are Better Than Saving in a Bank Account Mutual funds outperform bank savings accounts over time because savings accounts earn 2.5-4% interest that barely beats inflation,…
- Who Owns the Money in a Mutual Fund? Investors, not the fund company, own the money in a mutual fund. Your investment buys you units, which represent a proportional ow…
- Is Investing in a New Fund Offer (NFO) a Good Idea? Investing in a New Fund Offer (NFO) is generally not a good idea for most investors, especially beginners. NFOs lack a performance…
- What is Side-Pocketing in Mutual Funds?
- What is CAGR in Mutual Funds? CAGR, or Compound Annual Growth Rate, shows the average annual growth of a mutual fund investment over time, assuming profits are …
- What Does It Mean When a Mutual Fund Underperforms Its Benchmark? When a mutual fund underperforms its benchmark, it means the fund has delivered a lower return than the market index it is measure…