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Advantages And Disadvantages Of Mutual Funds

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INVESTORS IN MUTUAL FUND:
 Who is investors: Basically, equity mutual fund offers good invstment opportunity for the medium and small investors to invest because of it low cost. But the other investors and even Non-resident of India(NRIs) can also invest invest in it.
 NAV: Each owner is the part owner of mutual fund so it is necessary to value of its part. Each share or unit hold by the shareholder need to be assigned a value. And it is the NAV (Net Asset Value) on the basis of which performance of the mutual fund in respect of their scheme is depends. NAV calculated current market value on daily basis. And after deducting all liabilities (except unit capital) of the fund dividing by members the units. Therefore, the relisable value which the investors will get for each unit on a day if then scheme is liquidated is reflected by it. With the changes in the market rate of equity NAV also keep changing its value on the basis of it. For example, suppose if the market value of securities of mutual fund scheme is Rs.200 lakhs and the mutual fund issues 10 lakhs units of Rs.10 each, then the NAV is per unit rs.20.
 How to invest: Mutual fund generally come with the advertisement in the newspaper publishing the date of launch of such scheme. The investors of it if they want can contract with the agents or distributors. They spreed necessary information about the schemes and also provide the application forms. Post office and bank also now a days distribute the units. However,

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