What affects a mutual funds NAV?

A mutual fund’s NAV is calculated by dividing the value of the fund’s assets by the number of the fund’s outstanding shares. When a fund distributes dividend payments to its shareholders, the NAV declines. Shareholders must keep this in mind when attempting to determine how well their investments are performing.

What do you mean by AMC in financial services?

Asset management companies
Asset management companies (AMCs) are firms pooling funds from various individual and institutional investors and investing in various securities. The company invests the funds in capital assets such as stocks, real estate, bonds, and so on.

Who is the trustee of mutual fund?

The trustee is the custodian of the trust of millions of mutual fund investors. Therefore, their responsibility is a fiduciary responsibility.

What is an AMC in mutual fund?

AMCs are responsible for the entire operation of the Mutual Fund. The objective starts right from making the financial goal for a fund, followed by selecting the asset class whether debt, equity or any other financial assets are to be included, followed by the selection of stocks, debt based bonds, real estate, etc.

What should an investor look for when investing in AMC?

Fund Manager’s credibility- AMC work in parallel to its fund manager. The performance of the fund manager is now the performance of AMC then. Hence, an investor must look for past performance of the fund manager w.r.t managing the assets and funds.

What are asset management companies (AMCs)?

Asset management companies provide investors with more diversification and investing options than they would have by themselves. AMCs manage mutual funds, hedge funds and pension plans, and these companies earn income by charging service fees or commissions to their clients.

How does AMC maintain the diversity of portfolio?

AMC maintains the diversity of portfolio by investing in both high-risk and low-risk securities such as stock, debt, real- estate, shares, bonds, pension funds, etc. Factors such as industry risk, market risk, return risk, political risk are considered before selecting any security to meet the return on investment targets.