How many times dividend are declare in mutual funds ,ELSS , or stocks?

I am a new investor , I wish to ask that how many times dividend are declare annually ( in one year ) in any of the mutual funds , ELSS ,or stocks , also I wish to ask if any of the mutual funds are facing loss so also it will declare the dividend or not , can any one say in very simple example how NAV is calculated , please help me .
please some body give me some more details .

Leave a Reply

Your email address will not be published. Required fields are marked *

7 + 20 =

  1. Dividend is declared when the Mutual fund has accumulated distributable surplus and it can do so only when their investments make profit and not otherwise. Top performing mutual funds are good avenues for investing and will not make loss most of the time until we face severe economic crisis. I will give you an example of NAV calculation.
    Say a mutual fund has Rs 100/- collected from 10 investors, at NAV of Rs 10/-, they will invest a part of it in different securities and they will keep some part as cash for liquidity, redemption or further investment, say they invest Rs 90/- and keep cash at Rs 10/-. After a month, the Rs 90/- invested grows to rs 100/-, so their total corpus becomes rs 110/- (100+10). Now the NAV becomes Rs 11/- (110/10). This how it works on a very simple basis.
    For any advice you can contact me at [email protected] or 120 4224336 as I am an AMFI certified Mutual fund advisor.

  2. Dividend are usually given once a year. But it can be given more than once also and it can not be given also.

    Dividend payment is not guaranteed. If a company is performing badly then it might decide to not give out any dividend. The amount of dividend given out is also not fixed. It is decided by the board of directors of the company, after evaluating the financial condition of the company. Same way in mutual funds also the dividend amount is not fixed. The fund manager can give dividend as per the performance of that mutual fund

    Dividends are a source of income for share investors. However this is a very small amount. Let’s take the case of Reliance Industries which is one of the best companies in India. They announced a dividend of 130 percent in 2009. The face value of their share is 10 rupees. So a 130 percent dividend will give a dividend payment of 13 rupees per share. The market price of a reliance share in 2009 was around 2000 rupees. So for a Reliance share the returns from dividend in 2009 was

    13 * 100 = 0.65% only

    Here is how NAV is calculated.

    Suppose you invest 1000 rupees in mutual fund.

    The mutual fund gives 100 units of 10 rupees.
    So initially NAV is 10 rupees.

    The Mutual fund buys a Reliance share which’ price was 1000 rupees at the time you invested .

    Later the price of the Reliance share increases to 1500. Then the NAV of your mutual fund unit will also rise proportionally to 15 rupees.

    By the way you can check out this free Ecourse about share market in the link It is very good. Simple language and lot of useful information. I copied most of this info from there.