It is very important for you to understand what is NAV if you want to invest in a Mutual Fund.
By investing in Mutual Fund Mutual Fund, your investment is in the hands of experts and in this way you can reduce the risk of direct investment in the stock market. Today, we will learn here that what is the NAV in the MF, how it is counted and how important it is.
Net Asset Value, or NAV, means directly the value of the total property. Net asset value, or NAV, in any of the Mutual Fund funds, after deducting the liabilities from the total value of all the shares of the portfolio, including cash, the outstanding balance is obtained by dividing it by the total number of units remaining.
NAV fund is per unit’s total asset value (excluding expenditure) and at the end of each day’s business, it is calculated by the asset management company (AMC) of that fund. On any given day, if that MF is terminated, then the unit holder of that mutual fund will get the price for each unit instead. In a way, the NAV is the book value of any mutual fund unit.
Most of the unit’s base value in the Mutual Fund Mutual Fund is Rs 10 or 100 rupees. In each business day, the NAV curve of the unit increases according to the market value of the fund’s portfolio.
NAV refers to the growth of the unit of a mutual fund mutual fund. If you invest Rs 12 per unit in a fund at NAV and after one year, if the NAV of that unit goes up to 15 rupees per unit then that fund has 25% growth. It is not right to believe that the mutual fund with lower NAV will give good returns and more NAV fund will give fewer returns.