Basic Questions On MF's

#1
I am looking to invest in a Mutual Fund at the earliest. I did a initial study of the top performing funds on mutualfundsindia.com. My objective is to invest for growth and I wish to stay invested for the long term. With this objective and my goal of investing in balanced funds, I have the following basic questions:

1. All the funds listed as growth in the site, invest heavily in equities (like > 75%) and the rest in debt & call money markets. Are there open-ended funds out there that invest 50(equity)-50(debt).

2. In the details about the fund, I see two values NAV(Rs/unit) and Face Value (Rs/unit). Can anyone tell me the distinction between the two? Also, when I want to invest in a mutual fund, under which of these category will I actually be paying the money?

3. Of the closed/open-ended funds, which is better? As stated above, I want to be a long-term investor.

4. Can people tell me the MF's that I should invest in given my profile.
 
#2
Hi,
If you investing for a long term horizon say more then 5 years period then most often aggresive equity fund will give you higher returns as you rightly pointed out they have more then 75% equity portfolio.

There are very good Balanced fund with less equity exposure.
1) HDFC prudence Fund
2) Magnum Balanced Fund
3) HDFC Balanced Fund

open ended fund are better from liquidity point of view you can exit them in any emergency situation.

Feel free to email on [email protected] if you need any more assistance
MFAdvisor.
 
#4
Hi stocknovice,
I would suggest that you visit the site www.valueresearchonline.com which is more authentic and does a thorough indepth analysis and rating of funds. You can simply select the 5 star or 4 star rated for investment base on your risk profile and requirements.
And answer to your question
Face Value: value of the fund at launch (generally Rs. 10) (like face value of share during IPO)
NAV: Net Asset Value (Total assets of the fund divided by no of units)
NAV of a fund is like the market value of a share, and can be greater, lessser or equal to face value.
If you need more details also write to me at [email protected]
Sridhar
 

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