Low NAV is better than higher NAV? Until today, that is what I thought, since NAV is the unit price of a MF.
If NAV is low, you can buy more? Isn't that good? #till NAV is only one factor to consider.
Other part is expense ratio. Lower expense ratio is better than higher. If expense ratio is lower, then you pocket more returns.
Most MFs have two plans:
• regular
• direct
Regular plans are available via intermediaries like ICICI Direct. These intermediaries collect commission. So your returns are lower.
You buy direct plans from the MF houses bypassing the intermediaries. Expense ratio for these direct plans are lower and hence you gain more in returns.
Most MFs have the option to buy directly from them. But you can also buy these direct plans from portals like #zerodha . These new portals don't take commission and keep these MFs with depositories (CDSL/NDSL). So your investment is safe and earns higher returns.
#investing #mutualfunds