a.
One of the terms given below is not related to Mutual Funds.
State which one is that term.
a) NAV
b) Dividend
e)
Rights Issue
d) NFO
Answers
Rights Issue is the term not related to Mutual Funds.
Step-by-step explanation:
Rights Issue is not related to Mutual Funds.
NAV - NET ASSET VALUE
Similar to stock having Price , Mutual funds have NAV
But NAV is calculated at end of the day only . (does not fluctuate with in day )
Mutual funds comes with two options
Growth option - No intermediate payments , all keep adding to NAV
Dividend option : intermediate payments to the investor in form of
NFO : New Fund Offer is To Raise Capital
similar to IPO in stock/shares
A rights issue is an invitation to existing shareholders to purchase additional new shares in the company.
This is not applicable to Mutual Funds
Rights Issue is not related to Mutual Funds.
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