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Do you know what NAV is?

5 min read
Do you know what NAV is?

For those who want to have some extra earning with the help of investment, the mutual fund can be the right option. For every investor, the safety of money is of paramount importance, and in a mutual fund, one can have complete safety.

The risk is another important factor that can make one worry about the invested amount but here that is also not a problem as there are special managers appointed to take care of the invested amount by millions of investors. The liquidity of the amount is also high in a mutual fund. Hence from all the aspects, a mutual fund is the safest option in the present world of investment.

How to invest in a mutual fund?

The investment is a simple process if one wants to go for this option. One can go for either an offline or an online mode. In offline one has to search a broker or go to the office of the company where the hard copy of the application form has to be filled and submitted while in online one can go to the site of the company where the soft copy of the form is available that one needs to fill.

The investor needs to provide a soft copy of his documents in online option while hard copies of the same in the offline option. In an online option, one can transfer the required fund via any of the online transfer options while in offline option, one has to provide a cheque for the concerned amount.

What is NAV?

NAV is the abbreviation for Net Asset Value. The mutual fund NAV is the price of the concerned units of the concerned mutual fund. One can also term it as purchase or sales price of the units. The NAV is derived following a particular formula which is Net profit divided by the units. Hence here the profit is considered after the deduction of expenses and losses only. The NAV of the fund is the base of the investment. There are various options with the help of which the investor can get the net asset value of the investment.

Which is the best company to invest?

The mutual fund market has an ample number of companies where the investor can invest. The mutual fund investment can be done with a small amount or even by instalment. One needs to invest for a long term that means somewhere between one to three years to see that the amount can grow. The investment in this option goes to the share market where the company has a specific option to invest in the market. It can be midcap, smallcap or even a large cap. The investor can check the companies where the investment is done by the mutual fund companies.

The liquidity of the amount is the best point that attracts the investor from different options. The investment in the mutual fund can be done with the help of offline or online options where the investor can go for any of the options as per his choice and situation.

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