Day to Day variation in Mutual Fund NAV.

While buying units of an Equity Based Mutual Fund online there was NAV displayed and I calculated the Units I could get on dividing the amount I was investing by the displayed NAV. After 2 days I got the Statement and found that the no of Units were less than I expected by almost 1% and off course the NAV for the transaction was higher by 1% than the displayed NAV.

I found that the NAV displayed while I bought the Units was for the previous day whereas for transactions of Equity Based Mutual Funds the NAV of that day (which is actually declared around 9 PM) applies. Incidentally the Equity Market Indexes (like NSE 50) went up that day and the Securities into which that Mutual Fund had invested went up thereby the NAV went up by 1%.

That led me to look at NSE 50 Index e.g. it closed at 8738.10 on 3-Oct-2016 yesterday and at 8769.15 today going up by 31.05 points (0.35%). So you can expect NAV of Equity based Mutual Funds to go up today from 0.1% to 0.4%. The Market does not always go up and it goes down as well due to various reasons including News like Surgical Strikes by India on Launchpads of terrorists near LOC in PoK on 29-Sep-2016 when NIFTY 50 closed at 8591.2 which is 153.9 points (1.76%) below the previous day close of 8745.15. Fortunately the Market started recovery on the next day and after the Market reopened after weekend it recovered further and today it has closed at 8769.15 which is higher than 8745.15 (28-Sep-2016 closing).

The markets varies throughout the day but it is the closing value which matters for the Mutual Funds.

Forget about NIFTY 50 you are interested in the increase in NAV of Mutual Funds in which you have invested and the value of your investment. Well the best way is to install one of the Android Application for Mutual Funds Portfolio which updates automatically in the night after NAVs are announced for the day.

I am using My Funds - Portfolio Tracker  Android Application for monitoring my Mutual Funds and Shares investment primarily because I can export the updated file to Excel and see it on my Laptop.  

Best site for learning about Mutual Funds and selecting the Funds to invest.

As written in the first post I had invested some money in Stocks. In order to sell them we needed a Trading and Demat Account. I searched on Internet and selected Zerodha. After we got the Trading Account I got attracted to Intra Day Trading (I think most people do because of quick bucks). We lost about Rs 6000/- and quit. Meanwhile I had sent Share Certificates to Zerodha for Demat. The best share among them was State Bank of India (SBIN) in which our investment of Rs 5000/- is worth Rs 1.25 Lacs or more (depending upon the day) today.

After trying to learn about which shares to buy for long term we decided to look for Mutual Funds and bought 100 units of Birla Sun Life Front Line Equity Growth through Zerodha.

I also applied for RBL Bank IPO and got 65 Shares which are trading above the cost price even after a Crash in the Stock Market on 29th Sep 2016 due to Surgical Strike by India on Terrorists Launch Pads in PoK near LOC.

While looking for Best Mutual Funds to buy and learn about types of Mutual Funds I found Relakhs.com This site is the BEST for learning about Mutual Funds Investments and decide about your investments.

We have invested in following Mutual Funds:

Birla Sun Life Frontline Equity Growth Direct
Birla Sun Life MIP II Wealth 25 Growth Direct
ICICI Pru Value Discovery Growth Direct
HDFC Mid-Cap Opportunities Growth Direct
Tata Balanced Fund Growth Direct

There is word Direct in each Fund because the investment is not through an Adviser. Incidentally the above investment is as per recommendation of Relakhs.com who are advising to go for direct to save on expense.