What is Mutual Fund NAV & How to check Mutual Fund NAV?

NAV stands for Net Asset Value, it is the value of a Mutual Funds assets less the value of its liabilities. By mutual fund I mean a particular scheme/fund of an AMC. [Checkout: All about investing in Mutual Funds]

The formula which is used to calculate NAV is: 

Net Asset Value of a mutual fund (MF) = Total assets managed – Total liabilities.

Net Asset Value per unit (of MF) = Net asset value / total outstanding shares (or) units.

Mutual Fund NAV

Relevance to Mutual Fund investments:

When you invest in a mutual fund you get units of share which is proportionate to the market value of the fund. For an example – when you invest Rs 5000/- lumpsum in a particular fund and that fund’s NAV is currently at Rs 20/- per unit, you get 250 units in your account and when the value of NAV rises you make a profit.

For SIP’s NAV are calculated on the date when the units are procured and thus helps an investor in averaging.

So an investor has to keep a track on NAV to know the change in his wealth/net worth.

Where can an investor find information about current NAV?

  • Current NAV can be found on AMFI’s website here.
  • Can be found on a particular fund houses website. Ex – You have invested in HDFC’s fund then you can find out on HDFC mutual funds website.
  • Your fund house send’s you reports every week, month, etc. whenever you have desired to receive it.
  • A simple option among all this can be to register on a free portfolio management website and create your own portfolio and this is how you can keep a track of your wealth all at one place. A few example of free online portfolio management tools are – MoneyControl, EconomicTimes, etc.
  • There are many mobile apps which also allow you to keep a track of it. Like the MoneyControl mobile app.
  • Business news papers also publish NAV’s on a daily basis.

The best method according to us is to take help of online portfolio management tool.

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