Can a value of mutual fund decrease even after a rise in it’s NAV?

Originally asked and answered on Quora, following is the link

Now an investor has invested Rs. 400 in Reliance liquid fund-Treasury plan when the NAV was 4023.9108(units allocated=0.099). The very next day NAV increased to some 4024 and now it is 4026.7599 but the value of his fund reduced to 398.65. So, he was wondering that even though the NAV increased why did he lose value?

This is a very interesting situation and a basic fallacy in how the mutual fund system works in India. Continue reading “Can a value of mutual fund decrease even after a rise in it’s NAV?”

What are the best ways for NRIs to invest money in India?

NRIs or Non Resident Indians are always facing a difficult question! Where should they save their money? In India or in the country they work in? Many financial experts will advise you to compare the financial situation in both the countries and understand which is most suitable. But one reason why most NRIs wish to keep some investments in India, is for liquidity in case of emergency and that the rate of returns in India is much higher than that of any other country, while in India it’s easy to earn 7% returns risk free, in US the same no. is less than 1%. Infact, in India if you invest in the right set of mutual funds and have a time horizon of 3 years+, you can easily earn 12%-15%+ Continue reading “What are the best ways for NRIs to invest money in India?”