Tuesday, October 10, 2006

NAV a factor?

Some of the investors have the tendency to prefer a scheme that is available at lower NAV compared to the one available at higher NAV. Sometimes, they prefer a new scheme which is issuing units at Rs.10 whereas the existing schemes in the same category are available at much higher NAVs.

Investors must understand that in case of mutual funds schemes, lower or higher NAVs of similar type schemes of different mutual funds have no relevance.

Investors should choose a scheme based on its merit considering performance track record of the mutual fund, service standards, professional management, etc.
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