tag:blogger.com,1999:blog-8469400657669284138.post4419372542271042177..comments2023-11-14T15:53:46.805+05:30Comments on Invest Money Better: Mutual Fund dividend calculation - a misleading method for customerJigihttp://www.blogger.com/profile/15677872491975930388noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-8469400657669284138.post-11734523400263627372011-02-04T16:38:12.092+05:302011-02-04T16:38:12.092+05:30http://www.thehindubusinessline.in/iw/2005/01/09/s...http://www.thehindubusinessline.in/iw/2005/01/09/stories/2005010901111000.htmAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8469400657669284138.post-32559454913793510162011-02-04T16:37:45.544+05:302011-02-04T16:37:45.544+05:30http://www.thehindubusinessline.in/iw/2005/01/09/s...http://www.thehindubusinessline.in/iw/2005/01/09/stories/2005010901111000.htmAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8469400657669284138.post-13185718547413363992011-02-01T10:51:44.554+05:302011-02-01T10:51:44.554+05:30one of the reason - AMC can deduct only few % base...one of the reason - AMC can deduct only few % based on AUM for all expenses included fund manager salary and others,so they do not want give bigger dividend and reduce AUM.<br /><br />-- Please read http://www.moneycontrol.com/mutual-funds/recent-dividends. Dividends can vary a lot depending on the fund.<br /><br /><br />---As you said, fund NAV depends on market condition.it can not grow all theAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8469400657669284138.post-50519303582977947632011-01-31T20:38:47.785+05:302011-01-31T20:38:47.785+05:30please read for dividend reinvest vs growth http:/...please read for dividend reinvest vs growth http://www.investmoneybetter.com/2010/12/mutual-fund-growth-vs-mutual-fund.html<br /><br />one of the reason - AMC can deduct only few % based on AUM for all expenses included fund manager salary and others,so they do not want give bigger dividend and reduce AUM.<br /><br />As you said, fund NAV depends on market condition.it can not grow all the time Jigihttps://www.blogger.com/profile/15677872491975930388noreply@blogger.comtag:blogger.com,1999:blog-8469400657669284138.post-30886708919378127032011-01-30T10:57:53.468+05:302011-01-30T10:57:53.468+05:30Also if growth is the best long term bet, the NAV ...Also if growth is the best long term bet, the NAV of growth schemes should touch sky high prices with time as nothing is being paid out (and our sincere assumption that equity is the best asset class over the long term). There are schemes for more than 15 years but the highest NAV they have reached is in the range of few hundreds from the lowest value of Rs 10.<br /><br />Going forward the NAV ofAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8469400657669284138.post-87519460875312062432011-01-30T10:45:57.802+05:302011-01-30T10:45:57.802+05:30Also still your calculation is wrong cause the NAV...Also still your calculation is wrong cause the NAV would have changed by the time dividend has been declared (appreciated or depreciated). You are assuming the same NAV even at dividend declartion.<br /><br />If we were to go by you calculations then if a company declared 2 dividends of Rs 5 each, then all its assets have been paid off as dividend. In other words, fund has no value ;). If you areAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8469400657669284138.post-90899328588551571932011-01-30T10:41:59.511+05:302011-01-30T10:41:59.511+05:302)To declare dividend,it's purely driven by AM...2)To declare dividend,it's purely driven by AMC's marketing team.We have seen dividend in year 2008 when market falls very badly.so even if AUM was getting lesser they declared dividend to attract more customer.<br />---<br />--- Dividends are not declared to attract customers. Otherwise why dont all funds declare dividends at the end of financial year? And why small dividends of range ReAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8469400657669284138.post-4330835911194085902011-01-29T18:51:37.677+05:302011-01-29T18:51:37.677+05:301)When Dividend declared, NAV falls with dividend ...1)When Dividend declared, NAV falls with dividend amount plus ( actual change of NAV based on Today's market trend. may be +/- amount )<br />2)To declare dividend,it's purely driven by AMC's marketing team.We have seen dividend in year 2008 when market falls very badly.so even if AUM was getting lesser they declared dividend to attract more customer.<br />3) In your example:<br />--IfJigihttps://www.blogger.com/profile/15677872491975930388noreply@blogger.comtag:blogger.com,1999:blog-8469400657669284138.post-55991778525416766022011-01-28T11:12:56.809+05:302011-01-28T11:12:56.809+05:30To consider dividends as your own money is debatab...To consider dividends as your own money is debatable. To begin with, one should know that a fund's NAV is reflected by its AUM. If AUM is large so is NAV (if the units remain same i.e no one buys no one redeems. Even if buy / redemptions take place, they are small that AUM is not effected, in most cases). Secondly, with time AUM may increase or decrease based on market conditions. Generally Anonymousnoreply@blogger.com