Posted On Monday, Oct 25, 2021
|Table of Contents
How to measure mutual fund scheme performance
Mutual fund scheme return calculator
Mutual fund Scheme analysis
How Performance of Mutual fund Scheme is based on NAV
Are you an investor who wants to invest in mutual fund schemes but shy away because you don’t know enough about it?
Well, we are here to help.
Today we tell you everything an investor looking to invest in mutual fund schemes should know.
1. How to look at a Mutual fund scheme performance?
2. What is the Mutual fund scheme meaning?
3. What does a mutual fund scheme comprise?
4. How to make the most of a Mutual fund scheme return calculator?
5. How to do a mutual fund scheme analysis?
And much more...
So, let’s start with the basics.
What is the mutual fund scheme meaning?
You see, a mutual fund is an investment vehicle that is professionally managed by a “fund manager”.
An asset management company managed investment for investors, both individual and institutional..
The AMC collects money from them, pools it and then invests it in equity, bonds or other securities, as the fund manager deems fit as per the objective of the scheme.
Based on the investment objective of the fund, the money is invested by the fund manager.
For example, Equity-oriented scheme, Debtoriented scheme, Sector-specific schemes etc.
This should make mutual fund scheme meaning clear to you.
The next thing we think an investor must know is what a mutual fund scheme is made up of.
As per the objective of the scheme, a mutual fund scheme is made up of equity or bonds or other securities or a combination of these.
Based on the objective of the scheme, the fund manager decides how much money goes in which type of investment.
So, the pooled money is invested in the underlying securities and together is what a mutual fund scheme is made up of.
Now that you know what a mutual fund scheme is made up of and also the mutual fund meaning, it is imperative to know how to look at a mutual fund scheme performance.
To put it simply, if you have decided to invest in a mutual fund scheme, you must first understand the mutual fund scheme’s performance.
Look at the following factors:
a. Compare the scheme’s performance against its benchmark
b. Look at the scheme’s history of how it has performed in troubled markets
c. Compare the scheme’s risk-adjusted returns with other schemes
d. Look at the expense ratio
With the above factors, you can get a better view of the mutual fund scheme performance.
You can also use a mutual fund scheme return calculator for getting an estimate you can expect from investing in a mutual fund scheme.
The mutual fund scheme return calculator is a simple tool, it is a simulation.
It needs you to enter the type of investment you are planning – lumpsum or SIP, the amount to invest, your expected rate of return and the time period which you want to stay invested for.
Once you enter all this, the mutual fund scheme return calculator will give you an estimate of the value of your investments on desired timelines.
Another thing you should know about is NAV.
After all, one of the factors for selection of a mutual fund scheme is based on NAV.
Net Asset Value (NAV) is basically the market value of all securities under a mutual fund scheme.
NAV, in layman terms, is the money you have to pay to buy units of a mutual fund scheme.
Hence in the broader sense the indicator of the performance of a mutual fund scheme is based on NAV increase or decrease.
All in all, all the above points that we have discussed in this article can together be called as “mutual fund scheme analysis”.
You must have run a complete mutual fund scheme analysis before you decide to invest in a particular scheme.
We believe you are now well informed about the factors to consider before investing in mutual fund schemes.
To conclude, this article covered about mutual fund scheme performance, what a mutual fund scheme is made up of, what is mutual fund scheme meaning, how to use the mutual fund scheme return calculator, how mutual fund scheme is based on nav and the overall mutual fund scheme analysis.
So, if you wish to start investing right away, we at Quantum Mutual Funds will be more than glad to help you out. Just click here and start investing through SIP with as low as Rs 500 a month.
The views expressed here in this article / video are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments.
Please visit – www.quantumamc.com/disclaimer to read scheme specific risk factors. Investors in the Scheme(s) are not being offered a guaranteed or assured rate of return and there can be no assurance that the schemes objective will be achieved and the NAV of the scheme(s) may go up and down depending upon the factors and forces affecting securities market. Investment in mutual fund units involves investment risk such as trading volumes, settlement risk, liquidity risk, default risk including possible loss of capital. Past performance of the sponsor / AMC / Mutual Fund does not indicate the future performance of the Scheme(s). Statutory Details: Quantum Mutual Fund (the Fund) has been constituted as a Trust under the Indian Trusts Act, 1882. Sponsor: Quantum Advisors Private Limited. (liability of Sponsor limited to Rs. 1,00,000/-) Trustee: Quantum Trustee Company Private Limited. Investment Manager: Quantum Asset Management Company Private Limited. The Sponsor, Trustee and Investment Manager are incorporated under the Companies Act, 1956.
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