Anyone asking you to choose a mutual fund scheme because it has low NAV is misguiding you

Anyone asking you to choose a mutual fund scheme because it has low NAV is misguiding you

In three decades of interacting with mutual fund investors, I have faced many surprises as to the kind of misunderstandings that people can have about the mechanisms of how mutual funds work. Unfortunately, NAV and dividends, which are the two most basic parts of the mutual fund, are the subject of most misconceptions. With dividends, Sebi has recently made a start by abolishing the word altogether and renaming mutual fund dividends ‘Income

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