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Saturday, November 16, 2019

What is the difference between investing in a mutual fund and in an Initial Public Offering (IPO) of a company?

IPOs of companies open at higher or lower prices than the issue price, depending on market sentiments and perceptions of investors. However, the face value or par value of mutual fund units does not rise or fall immediately after allotment. Mutual fund schemes take time to invest in securities and their NAV depends on the market values of these securities.

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