Thread by @myfinology

𝗦𝗵𝗼𝘂𝗹𝗱 𝘆𝗼𝘂 𝗯𝘂𝘆 𝗠𝘂𝘁𝘂𝗮𝗹 𝗙𝘂𝗻𝗱𝘀 𝘄𝗶𝘁𝗵 𝗛𝗶𝗴𝗵 𝗡𝗔𝗩 𝗼𝗿 𝗟𝗼𝘄 𝗡𝗔𝗩?

Let's answer⤵️

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What's NAV?

The Net Asset Value (NAV) of a Fund is the value at which an investor buys or sells the fund’s units; i.e. price per unit of the Mutual Fund.

NAV = (Total Assets – Total Liabilities) / Number of Units

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NAV of a fund clearly impacts your returns while investing, which is why people feel what share price is to stocks, NAV is to funds.

So what should you pick?
Mutual Funds with high NAV or Low NAV?🤔

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𝗛𝗶𝗴𝗵 𝗡𝗔𝗩 𝗺𝗲𝗮𝗻𝘀 𝗛𝗶𝗴𝗵 𝗿𝗲𝘁𝘂𝗿𝗻𝘀, 𝗼𝗿 𝗶𝘀 𝗶𝘁?

Well, high NAV doesn't mean the fund is performing well; It may mean the fund has been around for a longer tenure or the fund has shown good performance in the PAST.

𝗔𝗻𝗱, 𝗣𝗮𝘀𝘁 ≠ 𝗙𝘂𝘁𝘂𝗿𝗲

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Here’s an example

Assume an investment of Rs 20,000 each in two Equity-based schemes.

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Let’s assume both schemes perform equally well and rise by 10%.

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High or Low NAV does not affect investment growth.

✅The value of your #Investment increases only due to the performance of the funds.

Past depicts nothing about the future of investment.
Comparing mutual funds based on NAV is baseless. Period.

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While buying Mutual funds, one should check

✅Fund Vs. Benchmark's performance
✅Expense Ratio
✅ Fund Philosophy
✅Track record of fund manager

With all these parameters in mind,recipe.finology.in offers handpicked MF recommendations fr ur long-term wealth creation

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