Frequently Asked Questions

Who takes care of my investment?

A. Asset Management companies have experienced and efficient fund managers who manage the pool of investment. Fund Manager takes cares of the investment and trading activities in the underlying securities, realizing capital gains or losses, and collects the dividend or interest income.

Q. What is a NAV?

A. The Net Asset Value (value of a share of the mutual fund) is calculated daily based on the total value of the fund divided by the number of shares currently issued and outstanding. It changes daily depending on the change in the size of the fund.

Q. What is a money market?

A. A money market is a financial market where only short-term debt instruments are traded. In the money markets, banks lend to and borrow from each other through short-term financial instruments such as Certificate of Investments (COI) or enter into agreements such as repurchase agreements (repos).

Q. What is a capital market?

A. A capital market is the market in which long-term debt and equity instruments are traded or where companies and governments can raise long-term funds. Capital market includes both the stock markets as well as the bond markets.

Q. What is the difference between money market and stock market funds?

A. The money market funds basically invest in short-term debt instruments, mostly Treasury bills. The return in these funds is less but the advantage of saving your principal is the primary factor.
Stock market funds invest in stock markets generating high returns but involving high risk of losing principal as well.