The recent drive
to clear some of the
common myths about investing in mutual funds notwithstanding, some of the basic
terminology of mutual funds is actually quite confusing for a new investor and
even some savvy investors will also
agree that they don’t fully understand some of the jargon when it comes to how
mutual funds work. Some of the performance metrics typically used to sell
mutual funds to customers can sometimes be misleading.
Terms like NAV or
Net Asset Value and dividend do not always mean what a new investor would
assume they do. A high or low fund NAV is not something that is likely to
affect the returns you get on your invested corpus.