Get the best option for easy investingby Ravi Kumar Blogger Live
In the modern world of finance, there are many tools available that can help one to invest the amount and earn a good return on them. No doubt each of them has certain benefits as well as limitations and hence one needs to decide prudently where he wants to invest. In the present scenario, the mutual fund is considered as a very good option for lower to the middle-class person who wants to save some amount every year and earn a good return on it so that after a certain period he can have the desired amount in his hand. Hence it also helps one to achieve his short as well as long term financial goals.
In the market of mutual fund, there are certain terms used which an investor must know and understand. Here are a few of them.
· Unit: The unit is a part of the total stake which is given to the investor in return to a certain amount invested in the concerned fund. Every unit has a price. For example, if the unit price is 150 and one invests 600, he will be given 4 units of the fund.
· The NAV: NAV is a short form of net asset value. It is an important term as on the basis of the NAV only one can know how much amount he can have if the units are redeemed or how many units he can get for the specific amount invested in the fund. The NAV formula is very simple where the net asset is divided by the total number of units with the fund manager.
· The fund manager: Fund manager is the person who is provided with the duty to manage the fund of the concerned scheme. He has to manage the fund and monitor the same when invested in the market. In case of any risks, he can move the fund from one sector to another or one company to another. There is also a fund management charge levied on each investor for his services.
The advantages of investing in mutual fund only attract investors.
· Easy to invest: The process of investment in a mutual fund is much easy. One needs to fill a form and pay the amount. There are also offline and online options available for investors from different segments.
· Transparency: Other markets such as investment in gold or land as well as stocks are little complicated to understand for a common man which is not the case with the investment in mutual fund. One can have a clear idea about his investment, value and amount to get if he redeems the units.
· Wide options: There are lots of options available in the market which can help the investor to invest the specific amount in a specific sector. There are small caps, mid caps and large caps available in the market where the fund manager invests the amount and the investor can have its benefits. Hence it becomes easy for the investor to have good benefits at less risk.
Learn more at Gulaq Mutual Fund Blog
Created on Jun 14th 2019 01:16. Viewed 50 times.