Loading…
Mutual funds
Also called: NAV, Net asset value
NAV (net asset value) is the price of one unit of a mutual fund: the market value of everything the fund holds, minus what it owes, divided by the number of units. Fund houses publish it every business day.
NAV = (Market value of holdings + Cash − Liabilities) ÷ Units outstanding
A fund holds ₹500 crore of assets, owes ₹5 crore and has 20 crore units in issue. Its NAV is ₹495 crore ÷ 20 crore = ₹24.75 per unit, so ₹10,000 buys about 404 units.
A low NAV does not make a fund cheap: ₹10,000 buys the same value of holdings at a NAV of ₹10 or ₹1,000.
NAV (net asset value) is the price of one unit of a mutual fund: the market value of everything the fund holds, minus what it owes, divided by the number of units. Fund houses publish it every business day.
NAV = (Market value of holdings + Cash − Liabilities) ÷ Units outstanding. A fund holds ₹500 crore of assets, owes ₹5 crore and has 20 crore units in issue. Its NAV is ₹495 crore ÷ 20 crore = ₹24.75 per unit, so ₹10,000 buys about 404 units.
No. NAV describes a fund's costs, structure or past record. Mutual fund investments are subject to market risks, and past performance does not indicate future returns.