Basic terms and concerns you need to know upon investing in funds.
Net Asset Value (hereinafter referred to as “NAV”) means total value of assets and investments owned by Fund, less its liabilities at the date of valuation.
For open-end fund, NAV will be calculated by the Custodian Bank. The growth of NAV also means the growth of fund, so investors and watch the NAV to understand about the performance of their investment.
Each type of fund has it’s own resolution about the fee that investors need to pay for fund management company as well as the fee that fund need to pay for fund management company and its service supplier. All of the fees are clearly define in Fund Prospectus and Resolution
Investors can easily switch their fund or transfer the fund at the fund management company or through their securities trading account if they already opened account at securities brokerage firms.
Investors can track their fund’s performance through
|Net Asset Value (NAV)||
Each fund is designed based on many factors especially the portfolio structure, investment objective, risk tolerance. So investors should not choose a single fund only.
|Type of funds||Risk Tolerance|
|Income||Low – Average|
|Growth||Average – High|