Mutual Fund FAQs: What is Net Asset Value (NAV) of a scheme?

Net Asset Value

or simply NAV is the price at which an investor buys a

mutual fund

shares from a mutual fund company or sell them to a mutual fund company. In more simple terms, the NAV is simply the price per share of a mutual fund. The NAV of a mutual fund is calculated by the mutual fund house itself or by an accounting firm hired by the mutual fund.

How NAV is calculated?

NAV is the total value of the securities in the fund minus the liabilities and divided by shares outstanding. It represents a fund’s per share market value and is calculated by the AMC at the end of every business day, after taking into account the closing market prices of the securities that the fund or scheme holds.

NAV formula

NAV = Market value of the fund's investments + Receivables + Accrued Income - Liabilities - Accrued Expenses

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1. What is the NAV or net asset value of a mutual fund scheme?Net asset value is the price at which you purchase a mutual fund share from a company or bank or the price at which you sell it. Simply put, net asset value is the price per share of a mutual fund.
2. How is NAV or net asset value calculated?NAV = Market value of the fund's investments + Receivables + Accrued Income - Liabilities - Accrued Expenses.
3. How does NAV impacts

   mutual funds

   ?NAV or net asset value is the market price of a mutual fund unit held by you. The comprehensive cost of a mutual fund relies on this market value per fund unit.
4. What is SIP NAV?The net asset value of a SIP is the difference between the fund's total asset and its liabilities, divided by the total number of shares.

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