Mutual Funds Decoded - From Order to NAV

Mutual Funds Decoded As investors, we buy mutual funds(MF) from various platforms and receive units. But have you ever wondered what happens behind the scenes? How do these funds operate, function and what processes are involved in managing them? In Mutual Funds Decoded series, we'll explore about these in detail. Mutual Funds Decoded - Structure of MF Mutual Funds Decoded - From Order to NAV (you are here) A visit to MF office Capital Mind Mutual Fund held flexi cap unit holder meet in the last month. When I asked if I can visit their office and talk to the team they gladly agreed. Thanks to Varun Mishra, Head of Operations, for taking time out to explain various aspects of MF process in detail. MF Orders There a bunch of ways investors can buy mutual funds as shown below. On a daily basis, Ops team will monitor all these inflows in real time, aggregate the amount and let Portfolio Manager(PM) know about the available cash. MF NAV A 14 step sequence diagram showing interactions…