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Showing posts from May, 2014

5 money facts your child must know

It is amusing to note the kind of views kids have on money. I know of a little one who thinks she can solve world poverty by simply getting an ATM at home. Smart girl! Life is magical when you are still discovering the world and forming your ideas. While I hate to break the spell, it is important to gradually unravel the science behind this magic.  Unlike natural sciences like the law of gravity which kids test on their own (by throwing your shoes and watches out of the window), money facts are not something that will get ingrained into their minds naturally. It has to be understood systematically with deliberate efforts.  As your child observes the economic activities happening around and develops their views, it is important to get a few facts established well in their mind as a means to build the right foundation:  1. Money is a means of exchange  This is a simple fact that kids understand quickly with little effort from your end. At some point they refrain from grabbing the att

3 NAV related questions you always had...Answered

NAV or Net Asset value is the price per unit of a scheme on a given date. It is the NAV of the fund that determines the number of units you will get when you invest in a particular scheme. Many investors have misconceptions about the NAV of mutual funds and about how NAV is linked to a fund’s performance and its returns. Hence as an investor, it becomes very important for you to understand:  1. What is NAV? 2. How is it Calculated? 3. The Application of NAV  1. What is NAV in mutual funds? Net Asset Value (NAV) in simple terms is the current worth of each unit of the mutual fund . NAV is the single most important number for a mutual fund scheme because all transactions of a fund are with reference to NAV. NAV, which reflects the worth of each unit of a scheme, is computed and declared by mutual fund AMCs on all business days. Depending on the type of scheme NAV is calculated up to 2 or 4 decimal places. 2. How to calculate NAV? On subtracting liabilities of a scheme from its to

Tips for your monthly house budget