Can one take the Baroda Pioneer Mutual Fund SIP route to invest in Baroda Mutual Funds?
If you want to invest or buy schemes under Baroda Pioneer Mutual Funds, you can do so by opting for the direct plan or the regular plan. Under the direct plan, you will have to buy the fund through the Asset Management Company (Baroda) directly. You can do so by visiting their website or by offline means. You can buy Baroda Mutual Fund units through the regular plan by visiting the websites of some financial technology companies. Both these plans gives you two investment route. You can either take the Baroda Pioneer Mutual Fund SIP route or choose to invest through the lump sum route. Both have their own advantages. It depends on your cash-in- hand right now. Both have their own advantages. By taking the Baroda Pioneer Mutual Fund SIP way, you can take advantage of rupee-cost averaging.
How is Baroda Pioneer Mutual Fund NAV Calculation Done?
NAV is a concept that new retail investors generally struggle with. It is boggling for every investor that wants to invest in NAV. Don’t worry, we are here to resolve all doubts about Net Asset Value. Before we understand how Baroda Pioneer Mutual Fund NAV is calculated, let’s first understand “What NAV is?” NAV exposed is Net Asset Value. It is the value at which an investor buys a single unit of the fund. Say, if you want to invest INR 1,000 in Baroda Multi Cap Fund and the fund’s NAV is INR 10 - the number of units you’ll procure is INR 1,000/INR 10 = 100 units. So, all transactions in mutual funds are done at prices linked to the NAV of the scheme.
The NAV of the scheme gets affected as the prices of the underlying stocks or securities move up or down. If the prices of the securities in the portfolio go up, its NAV also goes up and vice versa. Thus, NAV can be considered as an indicator for stock’s performance. However, it should not be considered as the only criteria of a fund’s performance. The scheme’s returns over the years should be a mandatory check as it gives an apt picture of fund’s performance. Now that we have a basic idea about NAV, we should head to the question of the hour, which is, how is the Baroda Pioneer Mutual Fund NAV calculated.
What is the formula to calculate the Baroda Pioneer Mutual Fund NAV?
There is no complex mathematics involved to the calculation of Baroda Pioneer Mutual Fund NAV. Every fund house uses the same calculation methodology to determine the Net Asset Value. Under this process, all the liabilities accrued by the portfolio are subtracted from all the assets owned by the scheme. This gives the total net assets and then divide it by the total number of outstanding shares to get the NAV. Breaking down it into a very simple formula:
NAV = (Total Assets - Total Liabilities) / Total number of Outstanding Shares
Does Baroda Pioneer Mutual Fund NAV Matter?
NAV should never be confused with the stock prices. The stock prices are decided by the investors depending on various factors like financials of the company, the management of the company, etc. But the Net Asset Value is not determined by the investors. This is the reason it is not advisable to base your investment decision on the basis of the NAV of the scheme. Comparing two schemes on the basis of their is of no use as it does not indicate anything about their future prospects. The NAV is only relevant in the sense that it reflects the number of units you will get. A fund with a higher NAV will get you lower units and a scheme with lower NAV will get you more units. And, that’s all!
Disclaimer: Mutual Fund Investments are subject to market risks, kindly read all scheme related documents carefully before investing in mutual funds.
How is Baroda Pioneer Mutual Fund NAV Calculation Done?
NAV is a concept that new retail investors generally struggle with. It is boggling for every investor that wants to invest in NAV. Don’t worry, we are here to resolve all doubts about Net Asset Value. Before we understand how Baroda Pioneer Mutual Fund NAV is calculated, let’s first understand “What NAV is?” NAV exposed is Net Asset Value. It is the value at which an investor buys a single unit of the fund. Say, if you want to invest INR 1,000 in Baroda Multi Cap Fund and the fund’s NAV is INR 10 - the number of units you’ll procure is INR 1,000/INR 10 = 100 units. So, all transactions in mutual funds are done at prices linked to the NAV of the scheme.
The NAV of the scheme gets affected as the prices of the underlying stocks or securities move up or down. If the prices of the securities in the portfolio go up, its NAV also goes up and vice versa. Thus, NAV can be considered as an indicator for stock’s performance. However, it should not be considered as the only criteria of a fund’s performance. The scheme’s returns over the years should be a mandatory check as it gives an apt picture of fund’s performance. Now that we have a basic idea about NAV, we should head to the question of the hour, which is, how is the Baroda Pioneer Mutual Fund NAV calculated.
What is the formula to calculate the Baroda Pioneer Mutual Fund NAV?
There is no complex mathematics involved to the calculation of Baroda Pioneer Mutual Fund NAV. Every fund house uses the same calculation methodology to determine the Net Asset Value. Under this process, all the liabilities accrued by the portfolio are subtracted from all the assets owned by the scheme. This gives the total net assets and then divide it by the total number of outstanding shares to get the NAV. Breaking down it into a very simple formula:
NAV = (Total Assets - Total Liabilities) / Total number of Outstanding Shares
Does Baroda Pioneer Mutual Fund NAV Matter?
NAV should never be confused with the stock prices. The stock prices are decided by the investors depending on various factors like financials of the company, the management of the company, etc. But the Net Asset Value is not determined by the investors. This is the reason it is not advisable to base your investment decision on the basis of the NAV of the scheme. Comparing two schemes on the basis of their is of no use as it does not indicate anything about their future prospects. The NAV is only relevant in the sense that it reflects the number of units you will get. A fund with a higher NAV will get you lower units and a scheme with lower NAV will get you more units. And, that’s all!
Disclaimer: Mutual Fund Investments are subject to market risks, kindly read all scheme related documents carefully before investing in mutual funds.
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