Sage-Tips

Why NAV is different in Zerodha?

To understand why the NAV of a Direct fund is higher than a regular fund, one has to understand the concept of expense ratio of a mutual fund. Hence, the higher the expense ratio, the higher is the deduction and the lower is the NAV.

Is it better to buy mutual funds directly or through Zerodha?

Zerodha is the best broker for investing in mutual funds. It offers direct mutual funds at zero commission from AMC and zero brokerage charges.

Why do mutual funds have different series?

Mutual funds are categorized into different “series” or “classes” which are designed to provide different benefits for investors and/or different compensation arrangements for the advisors who sell the fund.

Which NAV is applicable for purchase of mutual fund Zerodha?

The NAV rate of the T-1 day (historical NAV) will be applicable for orders placed within the cut-off time if sufficient balance is maintained in your Zerodha account.

Why is NAV higher in Zerodha?

Zerodha shows mutual fund NAV of direct schemes. Since there is low expense ratios for Direct schemes of mutual funds they will give higher returns than the regular ones. Therefore the NAV of direct mutual fund schemes are normally higher than the regular ones.

Why direct fund NAV is higher?

The NAV of the scheme is reported after deducting these expenses. As there are no commissions involved, so the expense ratio of direct plans is lower than regular plans. Because of this reason, the direct plan of a mutual fund scheme would report a higher NAV after considering all the expenses.

Does Zerodha charge fee for mutual funds?

No, Zerodha doesn’t charge a fee for investing in Mutual Funds (MF). Zerodha mutual fund charges are nil. On top, Zerodha offers ‘Direct Mutual Funds’ which results in an additional saving of over 2\% yearly to the investors. Zerodha is the first broker to offer direct mutual funds.

Which type of fund is often priced at a significant discount to net asset value?

Closed-end
Since the shares trade on the open market, the share prices are less dependent on the NAVPS than those in open-end funds. Closed-end funds that trade on public exchanges are often priced at a discount to the fund’s net asset value.

What is the difference between Series A and Series F mutual funds?

Mutual fund series are typically named with letters of the alphabet. For example, Series A or A Class funds are usually sold by an investment advisor, and Series F funds are usually only for fee-based accounts.

How do mutual funds get same day NAV?

If you want to invest in the last half an hour before the cut-off time of 3 pm then you may try to invest through websites of the AMCs directly, this may help you get the allotment based on that day’s NAV.

What is the difference between NAV and mutual fund units?

Mutual funds are divided into units. When you invest in a mutual fund, you are given units of mutual fund. The NAV is a representative of all the assets held by a mutual fund. #2. Should Mutual Fund Investors Pay Attention to the NAV?

What is NAV and is it the same as share price?

NAV is similar to the price of a share but it isn’t exactly the same thing. There are key differences between the two. But while many are asking what NAV is, many are also confusing themselves and trying to make investments in funds based on the NAV values of different funds.

Does a low Nav mean that the fund is cheaper?

A low NAV does not mean that the fund is cheaper or better. In fact, it may mean quite to the contrary. A lot of investors preferred to invest in NFOs for the same reason.

What happens to the NAV of MF-a and MF-B when shares increase?

If the shares of company XYZ rise 10\% in value, the NAV of both MF-A and MF-B will increase by 2\%. So, the NAV of MF-A will become ₹20.4. At the same time, NAV of MF-B will become ₹51. At this stage, you might think that MF-B increased by a greater margin. That is true.

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