NAV, or Net Asset Value, indicates a mutual fund scheme’s performance through its NAV per unit, calculated by dividing the market value of securities by the total units. For instance, with a scheme having a market value of Rs 200 lakh and 10 lakh units of Rs 10 each, the NAV per unit is Rs 20 (Rs 200 lakh divided by 10 lakh).
Since the market value fluctuates daily, a scheme’s NAV also varies accordingly. Mutual fund NAVs are disclosed at the end of each trading day, aligning with SEBI Mutual Fund Regulations. Units, except in Liquid & Overnight funds, are allotted at the prospective NAV based on the closing market value.
Even if a mutual fund accepts applications post-cut-off time, the investor receives the NAV of the next business day. Cut-off time rules apply to redemptions as well.
Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment decisions.
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As you are aware, under the rapidly evolving dynamics of financial markets, it is crucial for investors to remain updated and well-informed about various aspects of investing in the securities market. In this connection, please find a link to the BSE Investor Protection Fund website where you will find some useful educational material in the form of text and videos, so as to become an informed investor.