Mutual Funds
Is there any difference between investing in a mutual fund and in an initial public offering (IPO) of a company?
Yes, there is a difference. IPOs of companies may open at lower or higher price than the issue price depending on market sentiment and perception of investors. However, in the case of mutual funds, the par value of the units may not rise or fall immediately after allotment. A mutual fund scheme takes some time to make investment in securities. NAV of the scheme depends on the value of securities in which the funds have been deployed.
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- How to choose a scheme for investment from a number of schemes available?
- When will the investor get certificate or statement of account after investing in a mutual fund?
- What is a sales or repurchase/redemption price?
- What should an investor look into an offer document?
- How can the investors redress their complaints?
- What is Securities Lending Scheme?