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What is Net Asset Value (NAV) of a Scheme?

 

The NAV of the scheme indicates its market value at which an investor can invest or redeem their investments. The performance of a particular scheme of a mutual fund is computed basis the Net Asset Value (NAV) across time periods. Mutual funds invest the money collected from the investors in securities markets. In simple words, Net Asset Value is the market value of the securities held by the scheme. Since market value of securities changes every day, NAV of a scheme also varies on day to day basis. The NAV per unit is the market value of securities of a scheme divided by the total number of units of the scheme on any particular date. For example, if the market value of securities of a mutual fund scheme is Rs. 50 lakhs and the mutual fund has issued 1 lakh units of Rs. 10 each to the investors, then the NAV per unit of the fund is Rs. 50. NAV is required to be disclosed by the mutual funds on a regular basis – say every business day depending on the type of scheme

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Disclaimer:

The section Knowledge Centre on this website is a platform for YES Mutual Fund to spread awareness and educate investors about various Mutual Fund products. It should not be construed as an offer to sell nor is a solicitation of an offer to buy units of any of the schemes of YES Mutual Fund. Figures indicated here are for illustrative purpose only and does not correspond to any live or historical data. The information herein above is meant only for general reading purposes and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. Before making any investments, the readers are advised to seek independent professional advice, verify the contents in order to arrive at an informed investment decision. None of the Sponsor, the Investment Manager, the Trustee, their respective directors, employees, affiliates or representatives shall be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on account of lost profits arising from the information contained in this material.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.