Net Asset Value (NAV)
Net Asset Value is the market value of the assets of the scheme minus its liabilities. The per unit NAV is the net asset value of the scheme divided by the number of units outstanding on the Valuation Date.
Sale Price
Is the price you pay when you invest in a scheme.
Mutual funds have their drawbacks and may not be for everyone:
No Guarantees: No investment is risk free. If the entire stock market declines in value, the value of mutual fund shares will go down as well, no matter how balanced the portfolio. Investors encounter fewer risks when they invest in mutual funds than when they buy and sell stocks on their own.
With the increase in mutual fund players in India, a need for mutual fund association in India was generated to function as a non-profit organisation. Association of Mutual Funds in India (AMFI) was incorporated on 22nd August, 1995.
AMFI is an apex body of all Asset Management Companies (AMC) which has been registered with SEBI.
Wide variety of Mutual Fund Schemes exist to cater to the needs such as financial position, risk tolerance and return expectations etc. The table below gives an overview into the existing types of schemes in the Industry.
By Structure
Open - Ended Schemes
Close - Ended Schemes
Interval Schemes
By Investment Objective
Growth Schemes
Income Schemes
Balanced Schemes
Money Market Schemes
Other Schemes
Tax Saving Schemes
Special Schemes
Index Schemes
Sector Specfic Schemes
The mutual fund industry seems to be facing some redemption pressure now, which could be the reason why they have been net sellers of equity so far this month. According to the data available on the Web site of the Securities and Exchange Board of India, they have been net sellers to the tune of Rs 732.9 crore.
UTI Mutual Fund today said it will continue selling Unit Linked Insurance Product (ULIP) to its customers even though there is no clarity on the issue of fund houses selling such products. “We have been selling the ULIP plan to the customers of the Balance Fund since 1971 and would continue to do so,” said UTI Mutual Fund Chief Marketing Officer Jaideep Bhattacharya.
UTI sells ULIP plan of Life Insurance Corporation which happens to be one of the sponsors of the fund house.
The product has been sold to about 5 lakh customers and has asset size of about Rs 3,100 crore, he said.
It is one of the low cost product available in the market, he said, adding the cost is as low as 3 per cent as compared to up to 62 per cent in the market.
Under Schedule 5 of the FEMA (Transfer or Issue of security by a Person Resident Outside India) Regulations, 2000, an NRI/PIO is allowed to purchase units of domestic mutual funds without any limits on a repatriation basis [Clause 2(1)(i)]. Under Clause 2(1)(ii) of the same Schedule, he is also permitted to acquire such units on a non-repatriation basis, along with units of a money market mutual fund, without any limit.
Invest In India