The value of the fund's portfolio changes with changes in market value of the securities that have been bought. The portfolio is updated every day, to represent its current market value. This process is called'marking to market'.
The market value of the portfolio is known as the assets under management (AUM) of the fund.
The value of the investors' unit holdings also changes along with the market value of the portfolio. The current market value per unit is called the net asset value (NAV). NAV can move up or down, depending upon whether the value of the portfolio has moved up or down.
Mutual fund offers two types of plans : Direct Plan and Regular Plan. In direct plans, mutual funds provide the option to investment in the schemes without the involvement of any distributor; whereas, in regular plans, investments are routed through a distributor.
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