Net Asset Value/ NAV
Mutual Funds
Net Asset Value (NAV) is the value of a fund's investments. For a mutual fund, the net asset value per share usually represents the fund's market price, subject to a possible sales or redemption charge.
It is what the fund is worth, measured by its current price. NAV is the rupee value of one share of the fund's stock arrived at by dividing the current value of the fund's holdings by the number of shares that investors own.
A fund's NAV increases when the value of its holdings increases. For example, if its underlying investments are worth Rs.100 Lakhs today, but were worth Rs.95 Lakhs a year ago, its NAV will be higher if the number of shares has remained constant.
A fund's NAV may also increase if the value of the investments is unchanged but the number of outstanding shares drops. And it increases as well in the period between when distributions are added to the fund and the date on which those distributions are paid out to the shareholders.
To know more about NAVs, click here: http://www.sundarambnpparibas.in/dailynav/Mutual-Funds-Daily-Nav
Disclaimer “Mutual fund investing is subject to market risk. Please read the offer document before investing"
About the Author
Aaradhna is a professional copywriter of Sundaram BNP Paribas. She written many articles about the Mutual funds Investment tips and various funds . For more information about mutual funds visit – http://www.sundarambnpparibas.in
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