BFC Capital conducted its 243rd Quality Circle Program on December 17, 2022, at the Rotary Club, bringing together finance enthusiasts for an enriching session. Company VP, Vikas Singh, shared invaluable insights on investing and money management, equipping club members with practical strategies for financial growth. The session emphasized informed decision-making and long-term wealth creation, reinforcing BFC Capital’s dedication to investor education and financial empowerment.
How is NAV different from a stock price?
A mutual fund’s per-unit value, or NAV (Net Asset Value), is determined on a daily basis using the closing values of all of the fund’s investments for that day. NAV is more consistent and represents the true value of the fund’s assets than stock prices, which change during the trading day in response to the changing supply and demand.
What is a benchmark index in mutual funds?
A benchmark index, such as the Sensex of Nifty 50 and many others, serve as a point of comparison for assessing the performance of mutual funds on the basis of returns. Your fund is performing well if its returns are continuously higher than its benchmark, if your fund’s returns are below the benchmark returns you need to review your portfolio again!
How are mutual fund returns calculated?
The Compounded Annual Growth Rate, or CAGR, is typically used to calculate returns on long-term investments for example lumpsum investments. Absolute returns, which display the overall percentage gain or loss during the investment period, can be used for short-term holdings. Both techniques aid in evaluating the growth of your funds.
