Dsp Blackrock Mutual Fund Redemption Form Pdf' title='Dsp Blackrock Mutual Fund Redemption Form Pdf' />Most Important Mutual Fund Questions their Answers. Mutual Fund is a new baby for most of Indians I keep getting lots of mutual fund question through Comments on post, Ask Us or Business newspapers where I regularly write query section. Vit Previous Year Question Paper Pdf on this page. I have selected most important most frequently asked questions faq out of that. You can also ask questions in the comment section. You can also download FREE E book 1. Is a mutual fund with low NAV betterDifference in performance of a Dividend or Growth Plan What are the tax benefits in mutual funds What are the charges in mutual fundsIs it a good time to invest in mutual funds Should I invest in Infrastructure funds Equity Vs Real Estate which one is better Mutual Funds or Direct Equity who is the winner Low NAV Vs High NAV Mutual Funds. Question Is it worth to go for a SIP in a fund where the NAV price is very high. Say HDFC Equity where NAV is around Rs 2. Answer You should not consider NAV as a deciding factor while investing in Mutual Funds. It is a myth that its good to invest in Mutual Fund with a low NAV because you will get more units and that means more returns. Let me clarify high or low has nothing to do with the future performance of the fund NAV keep changing due to performance of the fund and that depends on markets fund manager performance. Only good thing with higher NAV fund is that it is having some past track record to show. Low NAV is a gimmick used by agents to introduce you to new funds where their commission is higher. Say NO to NFO. Check calculation of high and low NAV mutual fund Dividend or Growth. Question I want to invest in Reliance Mutual Fund, but as I am seeing the NAV, there is huge gap in Growth and Dividend NAV. Which is better to invest Answer Most mutual fund schemes come in three options dividend, dividend reinvestment and growth. Dsp Blackrock Mutual Fund Redemption Form Pdf' title='Dsp Blackrock Mutual Fund Redemption Form Pdf' />Mutual fund investors, bank account holders and those who have invested in insurance schemes may face a freeze if they dont comply. XOM Exxon Mobil Corp GE General Electric Com. MSFT Microsoft Corporatio. C Citigroup, Inc. BAC Bank Of America Corp. BP Bp Plc HBC HSBC Hldgs Plc PG. I have recently invested in Mutual fund as per your suggestions in your site. I am interested to invest in Debt Mutual Funds ShortUltra Short Term of 12 years. Under growth option, you get the units at the time of buying and you have same number of units till the end. The NAV keeps changing according to performance. The fact that under the dividend option the fund keeps on declaring regular dividends so NAV reduces with such dividends. In dividend reinvestment you get additional units on ex dividend NAV. However, the truth is that it does not make a dime of difference which option you choose, from the pure investment yield point of view. There is a caveat, though Investors should opt for that option that minimizes their tax liability. Lets take an example to understand this. Suppose an investor decides to invest INR 1. Dividend Re invest and Growth option of the fund. Check the calculation of dividend growth plans. Forex Margin Call Explained babypips. Learn what a margin call is in forex trading and watch how quickly you. Mutual fund question on high low NAV fund, growth or dividend plan, infrastructure funds, charges, equity vs real estate, direct equity or mutual fund lot. Tax benefits in Mutual Funds. Question What are the tax benefits I can get while investing through mutual fundsAre there any special funds where I can invest to avail tax benefits Answer Tax benefits on Mutual Funds keep changing time to time. According to current laws few of the tax benefits are No long term gain tax on sell of equity mutual fundlong term here means 1 year plus, Tax free dividend, No dividend distribution tax in case of equity mutual fund, Benefit of indexation in case of debt mutual fund Lower long term gain tax in comparison to any other interest bearing product. You can also invest in Equity Linked Tax Saving Schemes of mutual fund to take benefit under section 8. C. ELSS schemes have lockin period of 3 years as the name suggest it invest in equity shares. Mutual Fund Charges. Question How the mutual fund charges their annual maintenance fee from the investor Does it reflect in the NAV we get against the amount investor pays How can an investor calculate it from the statement it receives Other than this any other chargesNZD New Zealand Dollar Latest News, Analysis and Forex. Latest NZD market news, analysis and New Zealand Dollar trading forecast. Answer You are lucky that you are asking me this question in No Entry Load era so there are only annual charges that you have to pay. Mutual Funds deduct Annual Maintenance Charges from the fund that you are investing. Charges depend on the type of fund size of fund you are investing into. Charges are higher in case of equity funds if compared to debt funds if size of the fund is big charges are comparatively low. Charges are levied in guidance of SEBI maximum charges that are allowed in case of Equity fund are 2. These charges are used for asset management, distribution cost, custodian charge, registrar charge etc. These charges are automatically deducted from your NAV on daily basis. So the NAV you see is after adjusting these charges. It cant be calculated through statement but you can check these expenses in monthly factsheet. Good time to invest in Mutual Funds. Question I would like to invest Rs 2 Lakh for Long Term. Will you suggest investing it right now or should I wait for correction. Answer Far more money has been lost by investors in preparing for corrections, or anticipating corrections, than has been lost in the corrections themselves. You should understand that timing of market is not possible even by experts. In long term equity has consistently outperformed all other asset classes and works well against rising inflation. Equities are volatile in short run but have the potential to create immense and stable wealth in long run. In last 3. 0 years, if one has invested for any 2. Endowment policy average return of equity in same period is 1. But if you dont feel that you have such patience better invest through 1 year Systematic Transfer Plan. Read Secret of High return Investment. Datalogic Scanner Software more. One more on timing the market. Question I was running a SIP of Reliance Vision for Rs. SeptemberI invested Rs. Rs. 4. 9,0. 00. It touched Rs. I didnt withdraw the money. But now as the markets are going down, I think I have taken a wrong move by not taking the money out. Answer Equity gives you two type of return, one is speculative and another is fundamental growth. They start TIMING THE MARKET rather giving TIME IN THE MARKET. This approach for short term gains is the real cause of loss. Investment for long run is not only rewarding but also beats inflation by a good margin and creates wealth. If you keep such a close track on your investment it is going to be very tough for you to achieve your goals through equity investment. Infrastructure Funds. Question Should I invest in Infrastructure Funds as it is believed that India needs good infrastructure that will be reflected in performance of the stocks. Answer Infrastructure as a theme was started in 2. But now compare portfolio of diversified equity fund with any infrastructure funds and you will find that exposure in infrastructure related stocks has gone up to 6. So now investing in infra funds means increasing risk of your mutual fund portfolio. Infrastructure covers lot of things like banking, power, energy, engineering, construction, cement, metal etc. One more thing people need to realize that any diversified equity fund can buy into any sector or theme if fund manager sees potential. Buying theme funds should be decided only when the theme has something unique to offer, which other funds are either not offering or offering in a limited way. Equity Vs Real Estate. Question Which will give better returns in long term equity or real estate Answer Both equity real estate are growth asset class and will always beat inflation in long term by substantial margin. Both real estate equity market are driven by growth of the economy businesses. In long term equities give better return than real estate but investors have earned better returns in real estate.