Since there are numerous fund companies, every company is trying to introduce different ideas. They are introducing creative plans which require minimum investment amount. Systematic investment plan and value investment plan are the new techniques employed by them. In systematic investment plan, total fund investment is divided into equal and small amounts. The small amounts are paid as monthly installments. In value investment plan, monthly investment is made based on the market condition. Due to the heavy competition, it is difficult to choose the best and suitable scheme. Data collection, analysis and research are required to select the proper plan.
Information like profile, minimum investment, history and return percentage are mandatory for selecting the scheme. Profile of the manger is also one of the important factors. Dividend and Net Asset Value are important criteria in funds. When funds earn profit, dividends are received. You can get the dividends in cash or reinvest them in funds itself. NAV is net asset value. When trading of shares and units occur, this value becomes crucial. NAV denotes the total value of the shares and units. Past value of dividends and NAV is also important for the selection process.
Online companies and websites displays details like return percentage and minimum investment. In fact, the respective company website and bank websites post the general information about the new plans. Many websites even post tables containing comparison of various schemes. It gives an overall idea about different funds. Reliance, Tata, State Bank of India and HDFC Asset Management Company are some of the top fund companies.
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Divya Kannan
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