| Mutual funds are considered to be the safest and | | | | Fund Manager can change the asset allocation |
| secured way for investing money. Traditionally | | | | going against what is disclosed in the documents. |
| banks were the only mode of saving money. | | | | They are allowed a certain amount of flexibility to |
| People started moving out of the banks because | | | | alter asset allocation for the benefit of the |
| of the falling rates which is lower than the inflation | | | | investor. They make alterations in order to |
| rate. Mutual funds India was now the best option | | | | protect your mutual fund NAV. |
| to invest your money and allow it to grow | | | | Investment term is always related to risk. |
| steadily. | | | | Whether you invest in your business or money in |
| These are not only the easiest way of investing | | | | the market, there is a certain amount of risk |
| money but it is also very cost efficient. These are | | | | involved. There are few standard methods of |
| basically classified into various categories which | | | | calculating risks. Each of these methods helps to |
| mainly include open-end, close-end, large-cap, | | | | calculate the volatility. |
| mid-cap, low-cap, money market, equity and | | | | These methods are termed as |
| balanced, value, money and no loads. | | | | Beta |
| Securities and Exchange Board of India (SEBI) is | | | | Alpha |
| the regulatory board of mutual funds India. Some | | | | Standard Deviation |
| of the leading fund management companies in | | | | Sharpe Ratio |
| India are Reliance Mutual, State Bank of India, | | | | In India these methods of calculating risk are yet |
| Kotak Mahindra, Tata, LIC and many others. | | | | to be introduced. It is all about awareness that |
| When you decide to invest your hard earned | | | | can help you to play safe and be profitable in the |
| money, it is quite obvious for you to look for the | | | | market. |
| best. Finding the best mutual funds in the market | | | | Non-resident Indians can also make investments in |
| may seem to be tough if you do not research | | | | India. However, there may be some extra |
| well. There is lot many factors which need to be | | | | documentation required for such people. People |
| considered before investing your money. | | | | prefer this as against any other type of |
| NAV which is known as the Net Value Asset is | | | | investments because it offers diversification, |
| one of the important factors. It gives you the | | | | liquidity, flexibility and most importantly |
| value of single unit which will be given to the | | | | transparency. You will not find all these aspects in |
| investor. Mutual Fund NAV is calculated per share | | | | any other form of investment. |
| on daily basis. In simple words it is basically the | | | | The details of every mutual fund company are |
| market value of the securities in a particular | | | | published on the internet. However, it is always |
| scheme. Higher values of NAV will give better | | | | better to go through a self satisfactory research |
| returns to the investor. | | | | to find out the best in the market. |