NAV Meaning In Mutual Fund
NAV in mutual funds represents the per-unit value of the fund's assets minus its liabilities, calculated daily. It's used to gauge a fund's performance but doesn't solely reflect ROI.
A mutual fund with assets of Rs. 10L, liabilities Rs. 1L, expenses Rs. 50K, and 1L units has an NAV of Rs. 9/unit. Invest Rs. 9,000, get 1,000 units.
Nav Mutual Fund Example
In SIP, NAV determines units bought with each investment. If NAV is Rs. 50 and Rs. 500 is invested, one gets 10 units. As NAV changes, units received vary.
What Is NAV In SIP?
NAV = (Assets - (Liabilities + Expenses)) / Units. It represents a fund's per-unit value, calculated daily by subtracting liabilities from assets and dividing by outstanding units.
How To Calculate NAV?
NAV gives investors real-time insights on fund performance, allowing swift portfolio tweaks without waiting for market close.
Role Of NAV In The Performance Of A Fund
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