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When a market crash,what is the least amount the Nav can get,for example -100%,then that means I have no Money |
Then what will happen if I cotinue to hold the nav,can it pick up and multiply again or does it mean that it is dead if it goes below -100%,I hope you understand my question,Is Nav or unit of my mutual fund dead or useless after it goes down to a certain extent this event of an 100% crash is unlikely except in a case of war or a nuclear attack on any country , the maximum it will go will be 35-40% but still even in the worst scenarios its unlikely that NAVs of mutual funds will fall as they have profits and long term systematic holdings. because of diversification of money in different stocks, NAV will not become zero.(In a particular share it is possible.). |
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