Mutual Fund FAQs

NAV is the per-unit value of a mutual fund. It is calculated as: 
NAV = (Assets – Liabilities) ÷ Total Outstanding Units 
For example:

• Fund Assets: ₹1,000 
   

• Cash: ₹1,500 
   

• Liabilities: ₹500 
   

• Units: 100 
  NAV = (1000 + 1500 – 500) ÷ 100 = ₹20 per unit 
   

NAV is updated and declared at the end of every business day.

This is the price at which you can sell your mutual fund units back to the AMC. It is based on the latest NAV.

No. As per SEBI rules, mutual funds cannot charge entry loads on purchases, switches, or SIPs after August 1, 2009.

A mutual fund is a professionally managed investment fund that pools money from many investors to invest in stocks, bonds, or money market instruments. It helps individuals achieve common financial goals through diversified investments.

A sponsor sets up a Trust under the Indian Trusts Act. The Trust appoints an Asset Management Company (AMC) to manage the investments. Trustees ensure the fund follows all rules and protects investor interests.

Select a scheme based on your risk appetite. Key factors to evaluate include:

• Type of fund (equity, debt, hybrid, etc.)
• Fund size
• Portfolio diversification
• Investment goals
• Safety and credibility of the fund

KYC (Know Your Customer) is mandatory for all investors as per SEBI rules. It ensures your identity and address are verified. Once done, the KYC is valid across all mutual fund investments.

Visit CVL KRA and enter your PAN under the “KYC Inquiry” section to check your status.

To complete KYC, you’ll need:

• Proof of Identity (e.g., PAN card)
• Proof of Address
• Passport-size photograph

In the growth option, any returns earned are reinvested into the fund instead of being paid out. This is ideal for long-term investment as it allows your money to grow over time without short-term payouts.

Under the dividend option, profits are shared with investors either:

• As payouts (money is credited to your account), or
• As reinvestments (used to buy more units in the fund)