How much you should save.

At least 20% of your income should go towards savings. Meanwhile, another 50% (maximum) should go towards necessities, while 30% goes towards discretionary items. This is called the 50/30/20 rule of thumb, and it's popular quick-and-easy advice.

Warren Buffett Says...

"Someone's sitting in the shade today because someone planted a tree a long time ago"

The lesson here is to be a forward thinker when it comes to personal finance, whether you're talking about investing, saving, or spending. When you're deciding whether to put some more money aside for emergencies, think of a financial emergency actually happening and how much easier your life will be if you have enough money set aside.

Similarly, few people get rich quick by investing, and most people who try end up going broke. The most certain path to wealth (and the one Buffett took) is to build your portfolio one step at a time, and keep your focus on the long run.

1.52 crore SIP accounts do you have one

The mutual funds have currently about 1.52 crore SIP accounts through which investors are regularly investing in every month in various mutual fund schemes.

Yes it is a investment methodology in which investor invest a fixed amount in regular interval of time as once in a month instead of investing a lump sum or at once. Minimum investment amount of 500 rupees.

As per AMFI about 8.23 Lacs SIP accounts are adding in each month on an average during FY 2017-2018 with an average SIP amount of rupees 3250.00 rupees.

• Total collection of money through SIP accounts during April 17 To July 17 is 18544.00 crores
• During FY 16-17 total amount of 43921 crore was collected through SIP.

All the above figure are showing how is it gaining the popularity in investing options available now days.

Have you started it - if not start today.

TOP 15 Mutual Fund Houses as per AAUM For the Quarter of April-June 2017

Asset Under Management (AUM) refers to the total market value of investments managed by a Mutual fund Money management firm Porfolio Manager or other financial services company.

AUM generally changes according to the flow of money in to or out of a perticular fund or company. It also fluctuates based on changes in the value of a fund or company's underlying investment.

AAUM - Average Asset Under Management



Source:-

 

What is NAV and how is it calculated ?

The Net Asset Value (NAV) of a mutual fund or an exchange-traded fund (ETF) on a specific date or time is the price at which units of mutual fund are bought or sold. It is the market value of the fund after deducting all liabilities, then divided by total no of units.

i. e. : NAV = (Total fund value – All Liabilities)/ Total no of units

In the context of mutual funds, NAV per share is computed once per day based on the closing market prices of the securities in the fund’s portfolio. All of the buy and sell orders for mutual funds are processed at the NAV of the trade date. However, investors must wait until the following day to get the trade price. Mutual funds pay out virtually all of their income and capital gains. As a result, changes in NAV are not the best gauge of mutual fund performance, which is best measured by annual total return.

As ETFs and closed-end funds trade like stocks, their shares trade at market value, which can be a dollar value above (trading at a premium) or below (trading at a discount) NAV. ETFs have their NAV calculated daily at the close of the market for reporting purposes, but they also calculate intra-day NAV multiple times per minute in real time.

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What is Mutual Fund ?

A mutual fund is a pool of money collected from number of investors having a common investment objective is managed by a team or fund manager

The Money is used to invest in various shares in equity market as well as in Govt Bond, or money market instruments. The gain generated from the collective investment is distributed proportionately among the investor after deducting permissible expenses and levees by “calculating net asset value” or NAV.

Mutual fund is constituted as trust. Therefore they are governed by the Indian trust act 1882. This trust is created by one or more sponsors who are the main person behind this Mutual Fund business. Every trust has its beneficiaries and in mutual fund case the investors are the real beneficiary who invests in different schemes of mutual fund.

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