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Investing — Basics
Compare funds by returns and expense ratio, not NAV.
Concept
Compare funds by returns and expense ratio, not NAV.
NAV (Net Asset Value) is the per-unit market value of a fund. It's calculated as (total assets − liabilities) ÷ number of units. A fund that started at ₹10 and grew to ₹500 just means it performed well over time.
हिंदी मेंNAV fund की per-unit market value है। ₹10 से ₹500 हुआ मतलब fund ने अच्छा perform किया है।
Example
See it in action
Fund A has NAV ₹500, Fund B has NAV ₹50. If both grow 10% this year, your ₹10,000 becomes ₹11,000 in either case. The NAV number doesn't matter — the growth rate does.
हिंदी मेंFund A NAV ₹500 और Fund B NAV ₹50 — दोनों 10% बढ़ें तो ₹10,000 दोनों में ₹11,000 बनेंगे। NAV नहीं, growth rate मायने रखता है।
Key takeaway
Remember this
NAV is a scorecard of past performance, not a price tag. Always compare percentage returns.
A high NAV doesn't mean a fund is expensive, and a low NAV doesn't mean it's cheap — NAV just reflects past growth.
हिंदी मेंNAV past performance का scorecard है, price tag नहीं। हमेशा percentage returns compare करें।
Concept
SIP builds discipline and smooths out market volatility through rupee cost averaging.
A SIP lets you invest a fixed amount at regular intervals (usually monthly) into a mutual fund. When markets fall, your fixed amount buys more units; when markets rise, it buys fewer. This is rupee cost averaging.
हिंदी मेंSIP में हर month एक fixed amount mutual fund में जाती है। Market गिरे तो ज़्यादा units मिलती हैं, बढ़े तो कम।
Example
See it in action
With a ₹5,000/month SIP: in a down month (NAV ₹50) you get 100 units, in an up month (NAV ₹100) you get 50 units. Over time, your average cost per unit stays lower than buying only at peaks.
हिंदी में₹5,000 monthly SIP: NAV ₹50 पर 100 units, NAV ₹100 पर 50 units मिलती हैं। Time के साथ average cost कम रहता है।
Key takeaway
Remember this
SIP is a strategy, not a guarantee. It works best over 5+ years by averaging out market swings.
SIP doesn't guarantee returns — it's a method of investing regularly, not a product with fixed returns.
हिंदी मेंSIP एक strategy है, guarantee नहीं। 5+ साल में market swings को average out करता है।
Concept
A mutual fund pools your money with other investors and a professional manager picks the investments.
A mutual fund collects money from thousands of investors and invests it in stocks, bonds, or both — depending on the fund type. A fund manager makes the buy/sell decisions based on the fund's objective.
हिंदी मेंMutual fund हज़ारों investors से पैसा collect करके stocks, bonds में invest करता है। Fund manager buy/sell decisions लेता है।
Example
See it in action
An equity mutual fund might hold shares of 40-50 companies across sectors. If one company's stock drops 20%, the impact on your portfolio is small because it's spread across many holdings.
हिंदी मेंEquity mutual fund 40-50 companies के shares रखता है। एक company 20% गिरे तो portfolio पर effect कम होता है।
Key takeaway
Remember this
Mutual funds give you diversification and professional management — ideal if you don't have time to pick individual stocks.
Mutual funds aren't like fixed deposits — they invest in markets, so returns vary and aren't guaranteed.
हिंदी मेंMutual funds diversification और professional management देते हैं — अगर individual stocks pick करने का time नहीं है तो ideal हैं।
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