Which value is the total market value of the assets managed by mutual fund scheme as on a particular date?
Answers
Explanation:
An equity fund is a mutual fund scheme that invests predominantly in equity stocks.
In the Indian context, as per current SEBI Mutual Fund Regulations, an equity mutual fund scheme must invest at least 65% of the scheme’s assets in equities and equity related instruments.
Under the tax regime in India, equity funds enjoy certain tax advantages (such as, there is no incidence of long term capital gains tax on equity shares or equity funds which are held for at least 12 months from the date of acquisition). As per current Income Tax rules, an "Equity Oriented Fund" means a Mutual Fund Scheme where the investible funds are invested in equity shares in domestic companies to the extent of more than 65% of the total proceeds of such fund.
An Equity Fund can be actively managed or passively managed. Index funds and ETFs are passively managed.
Equity mutual funds are principally categorized according to company size, the investment style of the holdings in the portfolio and geography.
The size of an equity fund is determined by a market capitalization, while the investment style, reflected in the fund's stock holdings, is also used to categorize equity mutual funds.
Equity funds are also categorized by whether they are domestic (investing in stocks of only Indian companies) or international (investing in stocks of overseas companies). These can be broad market, regional or single-country funds.
Some specialty equity funds target business sectors, such as health care, commodities and real estate and are known as Sectoral Funds.
The Net Asset value is the total market value of the assets managed by mutual fund scheme as on a particular date
Explanation:
- The Mutual funds have a a value associated with them on a particular date and it is referred to the 'Net Asset Value' or 'NAV'. The mutual funds have a value per unit for the fund in the market that adds up to the total cost of the mutual fund.
- The "Net asset value" of the mutual fund is derived by adding up all the total worth of the fund which includes their value in the market. Thereafter the total value of these funds is divided by the the total number of units of the mutual fund
- If the "Net asset value" of the fund is low then it would have people purchase more units. If the net value of the fund is high then it is not possible for them to purchase many units. It is important to follow the specific timing for being allotted the NAV
To know more about Mutual Funds
Mutual fund is an indirect investment. Examine in the light of features of mutual funds.
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