What is a mutual fund nav and what does it imply?

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What is a Mutual fund NAV and what does it imply?
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• A mutual fund seems to be the perfect place to
  start your investment route and rightly so too.
  With the many options available today, the
  positive outcomes are there to be seen. There is
  a little bit of research you have to do when you
  are looking to making your first investment. The
  idea is to understand which fund would do well
  over a short and long horizon and then make a
  short list of mutual funds to invest in.

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Here are the key indicators towards a good fund .
. .
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Mutual Fund NAV

• It is the probably the most important indicator
  towards the true value of a mutual fund. It
  indicates the total market value held by all the
  shares in the portfolio in cash and less of the
  liabilities divided by the number of units that
  are outstanding in the mutual fund. In simpler
  terms, the latest NAV of mutual fund signifies
  the book value held. It gets updated once a day
  and is usually after the close of the equity
  markets.

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Industry Specific

• Look at the kind of companies that come under the
  investment options this could include blue chip
  companies, mid caps or very companies in a
  nascent stage. The key would be to understand
  what works according to you and what you see as
  an industry that would bring progress in the next
  few years. Once you have this covered, you would
  have a rough idea on the kind of growth you can
  see and how well you can get returns.

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Growth points

• Each industry has specific growth charts and
  these can give you a fair idea on the next few
  years, thus giving you a further idea on the kind
  of returns you can expect. So, this only
  indicates the kind of profit booking you can look
  at in the next few years.

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Past results

• You have the advantage of hindsight when you look
  at the results that have been garnered over the
  last few years and then make a calculated call on
  your investment. Look at the growth in individual
  years and a three year horizon. Youd have a much
  clearer idea that way.

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Who is your advisor?

• The role of your mutual fund analyst is as
  important as it gets, if you get this wrong all
  of it is wrong. You need someone with a lot of
  experience under his/her belt and the vision to
  know what companies would prosper in the future.
  It gives you plenty of insight a lot of idea on
  the way the share can grow in time. It would also
  give you a sense of character about the kinds of
  investments made and portfolio held.

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• Many of us do not understand the benefits of
  investing in the mutual fund at the start but
  over the long term, you would know that you are
  saving up in the best possible way. You can
  literally see the money grow over a short period
  of time. You will understand that such an
  investment must be started as soon as you can so
  that the benefits are built up over a long term
  period. If you have been thinking about starting
  an investment there could not have been a
  better time.

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