Net Asset Value (NAV) Calculation

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.

NAV is actually NAV per unit but every one use the term NAV as a short form. NAV is Net Assets of the fund per Number of Units outstanding. It is calculated by the below formula.

(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.

Accrued income is dividends and interests received.

Other Assets Include Cash, Cash equivalents etc

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.

Latest NAVs