MUTUAL FUND VALUATION AND ACCOUNTING

Mutual fund is a trust that pools the savings, which are then invested in capital market instruments such as shares, debentures and other securities. It works in a different manner as compared to other savings organizations such as banks, national savings, post office, non-banking financial companies etc. as most, if not all capital market instruments, have an element of risk, it is very essential that the investors have a clear understanding of how mutual fund operates and what are the advantages as well as limitations, how the net asset value (NAV) are calculated and what is the impact of dividend on NAV etc.