How important is the latest NAV to your Investment?

Known to reduce the amount that an investor gets the fees that investors have to pay play a very important role in the amount of returns that are received. This may include different charges such as transaction fees, sales charges, account fees, etc.

Investing in mutual funds is known to be the most common form of investment that is made in the stock market.

Some of the different types of fees and expenses that are involved in the same include:

1) Sales charges

There may be a sales charge which is imposed when either purchasing or selling different securities/units of a share of a particular fund. There are different types of sales charges which may include front-end load or initial sales charge (ISC), back-end load or deferred sales charge (DSC), low load or low sales charge (LSC) or even no load.

2) Transaction fees such as switch fees or short-term trading fees.

3) Account fees such as registered plan fees or minimum account balance fees.

4) Fund expenses such as the fees or expenses that a fund contributes to be deducted from the fund’s assets before the returns are calculated or even published.

This may also include management fees, operating expenses (or even fixed administration fees), trailing commissions such as those paid from management fees, trading costs or even incentive fees.

    

Management fees as well as operating expenses (MER): All of the operating expenses or management fees are known to contribute to a fund’s management expense ratio, which is also known as MER. This can range from 1% to 3%.  These fees are known to include overseeing the fund, the hiring a portfolio manager to make the investment decisions and hiring of other company/companies to assist in the administration of the fund.

The operating expenses include expenses such as legal fees, audit fees, bookkeeping and administrative fees, audit fees and marketing costs.

These funds all have a net asset value (NAV) which refers to the market value of the fund’s holding without adding the liabilities of the fund (net liabilities). This value is computed at the end of the day. There are certain funds which are known to compute their NAV’s more than once time per day.  Their turnover rate is known to be an indication of the ‘volume’ of the particular funds securities trading. It is easy to find out the latest NAV online from the website of a particular financial company. There are plenty of trading portals which are also available online where people can perform their different trading activities.

There are many different advantages of investing in different types of mutual funds. Some of the different advantages include increased diversification, daily liquidity, professional investment management, ability to participate in investments which are available only to larger investors, convenience and service and ease of comparison.

When investing in these types of funds there is a tremendous amount of flexibility as well as funds to choose from. Some of these may include equity funds, balanced mutual funds and bond funds. 

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Finance Calculators: All Your Finances Organised

Personal finance is yet to see the day light in high school or college academic courses. It is a real tough deal to manage yourself with the world of finance in the real world out there. It is a misconception that understanding and dealing with finance is not a cup of tea to all. Well all it takes is a little in depth reading of the subject and the best part is you do not necessarily be good in maths.

Savings is an important act but it is equally important to keep a track as to how are your savings really doing. Are they yielding the right returns? There are many tools to calculate it. The financial calculators are of many types and purposes; mutual fund calculator, budget calculator, pension calculator to name a few. It’s a computerised program to calculate the instalments one might have to pay for a certain amount of principal amount over a specified time period.

However there are many types of finance calculator. It helps in giving people a better idea about their financial transactions, keen on making any sort of a financial commitment. Here is a list of some calculators with varied purpose.

Budget Calculators: This is a simple program meant to give you a better idea about your monthly expenses. The take in account your monthly expenses and define you a monthly budget. It is more commonly used to figure out the gross monthly expenditure of an individual what would be the disposable income.

Pension Calculators: People on their verge to plan retirement or invest in a pension plan, this calculator are of a lot of use. They are pre-programmed with current interest and inflation rates.

Mortgage Calculators: Specifically targeted to calculate home loans and mortgages.
They take into consideration property tax, home value and even your credit profile.

Tax Calculators: It takes care of calculating the amount of tax you will be paying in a given period of time. It takes into account your tax bracket, current tax rates, rebates and your age.

The financial calculator has become a regular feature on the websites of investment companies, credit providers, banks and other financial resources online. Some advertisements also showcase loan calculators in them. You will also come across them on weekly financial blogs. A finance calculator is very much of a helpful tool for those stuck with their office work, or simply couldn't gather the time to visit a loan consultant or other financial advisers. You may soon come to realise that it is more of a preferable option. Try out a financial calculator to see how it helps you to make your financial future more planned and organised.

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