NAV(NetAssetValue)

Mutual Funds

Definition

The per-unit market value of a mutual fund scheme, calculated by dividing the total value of all securities in the portfolio (minus liabilities) by the total number of units outstanding. SEBI mandates that AMCs publish NAV daily for open-ended schemes. NAV changes with market movements and does not, by itself, indicate whether a fund is cheap or expensive.

Example

If a fund has total assets worth Rs 500 crore, liabilities of Rs 5 crore, and 10 crore units outstanding, the NAV is (500 - 5) / 10 = Rs 49.50 per unit.

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