Fund Accounting Adda

  In the world of investments a fund manager can use a number of instruments to invest the client's funds, here are a few-  Preferences by popularity and exposure - 1. Equity (Shares)                                                  2. Mutual Fund/ETF 3. Bonds 4. Derivatives (Futures & Options) Will start with Equity investment! When we buy a company's stock, we become a shareholder of that company because we have ownership (or a share) in it. So whenever we trade any stock, the broker will send us the contract note after the market close which contains all the stocks bought by us along with the quantity, cost and price Take a look below - it is a contract note and see the highlighted figures- First you see the name of the stock, followed by the transaction type (buy or sell), volume, gross price, brokerage per share and net price before taxes. And lastly we can see the taxes imposed like STT and GST etc. So here we need to understand two things- Gross Cost and Net Cost, l

  What is NAV in a fund? "Net asset value," or "NAV," of an investment company is the company's total assets minus its total liabilities. How is fund NAV calculated? NAV is calculated by adding up what a fund owns and subtracting what it owes. For example, if a fund holds investments valued at ₹1,00,000 and has liabilities of ₹10,000, its NAV will equal ₹ 90,000. Further, if the fund has 10,000 shares outstanding, the NAV per share will be ₹ 9 only. Here are some basic instances                                                                                                                                                                            

A custodian , also known as a custodian  bank, refers to a financial institution that holds the possession of customers' securities to reduce the possibility of theft or loss. The securities and other assets can be held in electronic or physical form. Custodians generally will be large, reputable firms since they are responsible for safeguarding the assets worth several million or even billions of dollars. The Fund Accounting service provided by a custodian falls under the Custodial Services sector. Services like investment accounting for purchases and sales, valuation of securities held under custody, income and expense accounting and regulatory reporting are all covered under this section. To understand this further, we have to understand some investment options first. If you are a high net worth individual (HNI) looking to get more out of your capital and are willing to take on additional risks, portfolio management services PMS and Alternative Investment Funds AIF might just