Many people have a false belief that, low NAVs are cheap and that’s why they rush for NFOs (New Fund Offers) because they offer Rs.10 per NAV which people consider cheapest. Not only this but many people have false belief that, NAV of Rs.10 is the cheapest so it can’t go below it. But this is not true.

The fact is that, NAV price has nothing to do with the market. NAV can go below 10 also. The underlying market is the same stretched weather the NAV is Rs.10 or Rs.10,000. Here are the few mutual funds that have NAV below Rs.10. These funds have offered NAVs at Rs.10 to investors during the Bull run last year but after that their NAV plunge below Rs.10

NAV as on 09th March 2009

- JM Basic – Rs.6.93

- Taurus Infrastructure – Rs.4.66

- Magnum Midcap – Rs.8.26

- Principal Junior Cap – Rs. 6.94

- ING C.U.B. – Rs. 5.68

- Canara Robeco Emerging Equities – Rs. 6.76

- ING Contra – Rs.6.61

- Sundaram BNP Paribas Capex Opp Reg – D – Rs.7.52

Mutual Fund Investment should be based on the Past performance of the scheme and the fund management team’s past record. What we are looking in Mutual Funds is its Management and not the low NAV.