So the fall in NAV, when markets collapse is a perfectly natural occurrence. The below par NAV of funds disheartens so many investors. A figure of over 100 schemes quoting below par has been issued. Included in this scare-mongering are both the growth and dividend option of individual funds. These two schemes represent the same fund and so reaching a count of over hundred based on double counting is plainly improper.
Many funds have just one option.
Here investors receive both dividends and capital appreciation. Dividends and bonus issues in the past have given investors returns. Their inclusion and the inference that performance has been poor are incompatible. Including index funds, which are passively managed and then drawing conclusions on the quality of fund management is also a below the belt inference. At the most fundamental level, the below par NAV shows that the current value is less than the value at which one entered.