Whenever we buy open ended mutual fund units the number of units we get for our investment is calculated based on Net Asset Value (NAV) of the fund. Similarly when we sell our units the amount to be returned to us is calculated based on NAV.
(Market Value of the Investments + Receivables + Other Accrued Income + Other Assets – Accrued Expenses – Other Payables – Other Liabilities) / (No. of units outstanding as on the NAV date)
Market Value of the Investments is calculated as per the last traded or closing price of the securities/debentures.
If NAV value of a scheme is high it doesn’t mean that the unit is over priced. In case of open ended mutual funds the NAV actually reflects the market prices of the funds’ assets neither at premium nor at discount.
Please visit the below AMFI link for latest NAVs of all schemes.
Sathish Emmadi
Sathish Emmadi is a co-founder & editor at Lastbull.com. He is presently working in IT for one of the world’s top mutual fund companies. Handled multiple projects in BFSI (Banking,Financial Services and Insurance) domain. An Engineering Graduate from NITW.
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