English - reaction / response of stock's price or mutual fund's NAV is NOT THE SAME but SIMILAR

Mutual Funds pay out (either cash or re-invested) and their NAV will be adjusted lower EXACTLY to the value paid out +/- the fund's holdings (stocks/bonds/cash/etc) movement for the day.

Stocks pay out and their MARKET PRICE:
a. Usually drops but to the exact value paid out is highly unlikely
b. May stay
c. May surge

All the above for stocks is due to bid/offer of free market.
VS
Mutual Funds aint strictly a bid/offer thing - fund house HAS TO BUY BACK at NAV of end day (usually) price.

This post has been edited by wongmunkeong: Dec 2 2011, 05:52 AM

Yr reply should then be:
Can i have that in a written contract + specifics of the pay out period and by who for each specific year IF yr investments dont grow at a clip of 10%pa compounded, signed by U (the UT CON-in-sultant) & Fund house's CEO or at least the Fund Manager(s).

That should be the last U'll see of the fellow.

Statistically, a 10yr period would for PM's equity funds would get about 6%pa to 9%pa CAGR, assuming "so-so" market performance at the end of the 10yrs.
Please note that if the markets' performance at the end of the 10th year period is at a run-up, one may hit >10%pa if one were to lock-in then
OR if the markets' performance at the end of the 10th year period is a crash... er... 3%CAGR 2%pa CAGR pun boleh kena
beware how the statistics are shown - always ask for ending periods in say end 1998 or end 2008 (bad years)
VS mid 2010 so-so year
VS 2011 great before EU fears started weighing in (which month did KLCI hit it's highest ar - which month heheh - i'm getting old & foggy)