Mutual Funds - Breakdown Information

Mutual funds report different types of asset breakdowns which help investors make investment decisions by comparing their risk appetite with the risks involved in a particular mutual fund. This breakdown information is provided in PDF format to the existing investors and funds can give this to transfer agents and dealers for advertisement purpose. The existing investors (advanced) may opt to come out of the fund or add more units to their portfolios based on the fund allocation changes by the mutual fund. Read more

December 26, 2009 | Filed Under Mutual Funds | Leave a Comment

BSE and NSE List of Holidays 2010/Sensex Holidays

The following table lists BSE and NSE holidays. BSE/NSE declares holidays for all major festivals, Independence Day (August 15th) and Republic day (January 26th). Saturdays and Sundays are weekly holidays.

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December 25, 2009 | Filed Under Market Outlook | Leave a Comment

Mutual Fund performance calculations

A mutual fund’s performance is calculated by change in its net asset value (NAV). It would help compare performance of different schemes.

Let’s consider a simple example and explore it to cover performance calculations of basic schemes. Example: A mutual fund scheme issued Rs 10 face value units to an investor at a NAV of Rs 20 on 1st Jan 2007 and the NAV at the end of Dec 07 is Rs 25. The performance of the fund for this period is calculated by the below formula.

Performance of the fund = (Current NAV – NAV at the time of Investment) * 100 / NAV at the time of Investment
Performance of the fund = (30 – 25)* 100/25 = 20%

This is the simplest case. Usually the funds also issue dividends. Let’s say the fund issued a dividend of 30% of face value. So the dividend amount per unit is Rs 3. Say the NAV at the time of dividend distribution is Rs 27. Read more

December 25, 2009 | Filed Under Fundamental Analysis | 1 Comment

Net Asset Value (NAV) Calculation

Whenever we buy open ended mutual fund units the number of units we get for our investment is calculated based on Net Asset Value (NAV) of the fund. Similarly when we sell our units the amount to be returned to us is calculated based on NAV.

NAV is actually NAV per unit but every one use the term NAV as a short form. NAV is Net Assets of the fund per Number of Units outstanding. It is calculated by the below formula.

(Market Value of the Investments + Receivables + Other Accrued Income + Other Assets – Accrued Expenses – Other Payables – Other Liabilities) / (No. of units outstanding as on the NAV date)

Market Value of the Investments is calculated as per the last traded or closing price of the securities/debentures.

Accrued income is dividends and interests received.

Other Assets Include Cash, Cash equivalents etc

If NAV value of a scheme is high it doesn’t mean that the unit is over priced. In case of open ended mutual funds the NAV actually reflects the market prices of the funds’ assets neither at premium nor at discount.

Please visit the below AMFI link for latest NAVs of all schemes.

Latest NAVs

December 19, 2009 | Filed Under Fundamental Analysis, Mutual Funds | Leave a Comment

Calculation of Mutual fund Expense Ratio (TER)

As we discussed Total Expense Ratio (TER) is total expenses expressed as a percentage of AUM. TER of a fund is calculated using balance sheet of the fund.

Calculate Total Expenses during an accounting period from Liabilities Section of balance sheet. Calculate Total Net Assets of a fund. Then calculate TER as below.

TER = (Total Expenses during an accounting period) * 100 / Total Net Assets of the fund

TER is also expressed in basis points by multiplying the percentage figure by 100. For example TER of an index fund of ABC Fund Company is 0.3% then it can be said that its TER is 30 bps. Read more

December 12, 2009 | Filed Under Mutual Funds | 1 Comment