What Makes The Price Of An Equity Mutual Fund Go Up, Or Down?

As we all know the investment made in the terms of the mutual funds means a long term investment in the units of the mutual fund company until and unless the investors finds a priced rate to sell the entity. But the thing is that what factors really makes the price of the mutual fund go up or even down.

Know the fund!

Every investor asks the exact same question, what happens to the money that the mutual fund company takes from us. The answer is simple. The money that we give or invest in the mutual funds are mainly gets invested in buying the shares or even knows as the stocks or entity. Basically the shareholders invest the stocks from a company with the money they get from the investors. The shareholders mainly buy shares mainly from 50 to 70 companies or in some cases even more.

Process that goes through to choose the right company!

After investment the equity fund manager of the mutual funds cautiously selects and verifies different companies with the help of his team members in order to invest the money rightfully in the stocks that can be productive.

They shortlist the companies from the list of over 55,500 companies from worldwide based on different criteria of the company. After the short listing has been done the team goes on to research the business fundamentals of the companies if they are eligible for a productive investment or not. The fund management team does an in dept investigation of the industry and by keeping an eye on their industry reports and as well as the news.

After the short listing and the analysis comes the major discussion about the future investments of the funds in the company weather to have it for a long run or buy new funds or anything else.

The real deal!

The main question is what the above knowledge has to do with the fund raisers. Everything!

The aim of the above criteria and all the discussions and the investigations about the companies are made to get a satisfactory long term run in the mutual fund investment. The fundraisers expect for the increase in the rate of the shares and the price of the share that has the money invested by them when they go for investing the investors’ money in the same company.

It is an obvious thing that when the companies that are holding the respective shares, grows, the stocks and the company’s shares also grows making the investment of the investors to grow. The main value of that of the equity mutual fund is mainly the sum total of the number of sums it holds.

 

As the share rate of the companies changes daily so is the value of the funds also changes daily. Thus the need of the cross check and the mutual fund portfolio is a much needed thing in order to check the daily increase or decrease in the share or the stocks of the companies where you invest your money.