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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.

 We would like to here your thoughts on the same! Comment and share your thoughts…

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