Existing MF Vs NFO

[mitivaidya]

Hi,
Im not sure how relevant my query is to this thread:-
Consider that an Investor X invests a certain amount with an MF (open-ended) when it has just started. He will get his units at par NAV, say Rs. 10.
Now say a couple of months down the line, another Investor Y decides to invest. If the market is slump then, the NAV of the fund will be lower. That would mean that Y will get more units compared to X, even if they invest the same amount.
Is my assumption correct? WOuldnt this mean that X would lose profits when Y entered? Do MFs make some adjustment to NAV or number of units allotted then? Because otherwise, considering that the MF has NAV less than par value, earlier investors will keep losing more when new investors invest the same amount as the old ones.
Can somebody please clarify this doubt?
Thanks...

[mrindia]

Originally Posted by mitivaidya

Hi,
Im not sure how relevant my query is to this thread:-
Consider that an Investor X invests a certain amount with an MF (open-ended) when it has just started. He will get his units at par NAV, say Rs. 10.
Now say a couple of months down the line, another Investor Y decides to invest. If the market is slump then, the NAV of the fund will be lower. That would mean that Y will get more units compared to X, even if they invest the same amount.
Is my assumption correct?

Yeh! u r correct.

WOuldnt this mean that X would lose profits when Y entered? Do MFs make some adjustment to NAV or number of units allotted then?

No, MFs do not make any adjustment.

Because otherwise, considering that the MF has NAV less than par value, earlier investors will keep losing more when new investors invest the same amount as the old ones.
Can somebody please clarify this doubt?
Thanks...

Absolutely correct! Investor loses proportionately when NAV falls. NAV multiplied by no. of units u hold is ur current value of investment.

mr india

[basudeo]

Hi,

I am holding some MF units like-
SBI Tax Gain93;
RIL DP Sector;
UTI InfraII;
Birla Midcap;
HDFC Infra;
Hdfc Tax Saver;

But there is no quotation for NAV in Economioc Times for above funds. Please suggest me the name of the web site from where I can get the latest information about NAV of above funds.

Basudeo

[mrindia]

Originally Posted by basudeo

Hi,

I am holding some MF units like-
SBI Tax Gain93;
RIL DP Sector;
UTI InfraII;
Birla Midcap;
HDFC Infra;
Hdfc Tax Saver;

But there is no quotation for NAV in Economioc Times for above funds. Please suggest me the name of the web site from where I can get the latest information about NAV of above funds.

Basudeo

try www.valueresearchonline.com

[ranjeet20]

Hi friends i want to know about to a new ipo which will come oct month at a time of dewali festival , if any one know about this pls give the mail of this forum

[nebujvs]

Hi

Iam Holding some fund from

Reliance MF
SBI MF
DCB Cho MF
Sunderam MF
and UTI

How can I trade(Add/Sell) my holding in a common site, Brokers offer trading in their site but it must brought from them and not all funds they do so. Ex.Geojit


JV

[ajs26]

What do u suggest is a better investment in terms of long term returns:
a) Investing in NFOs of good fund houses when NAV is still Rs 10.
OR
B) Investing in best performing funds while their NAV has already reached 100 or more.

[greatindianwiseman]

Originally Posted by basudeo

But there is no quotation for NAV in Economioc Times for above funds. Please suggest me the name of the web site from where I can get the latest information about NAV of above funds.

Basudeo

Go to AMFI website http://www.amfiindia.com/NavReport.aspx?type=0 for updated daily NAVs of all mutual funds.