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Net Asset Value

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How is mutual fund nav computed?

If you are investor in Mutual funds or ULIP, you will observe that when an investment (or premium payment) is made, you will be alloted some units.

Each scheme will have an NAV or Net Asset Value

NAV is like the cost or value of the scheme on that given day.

NAV is computed at the end of the day (after closure of the markets) and is displayed on the AMC website and is reported to AMFI and registrar's late in the night.

When we invest in a MF scheme, the AMC will use the funds to invest to buy certain assets.

Assets can be equity shares, debentures, secured loans etc.

Each asset will have a value.

For instance, with equity shares, we will have number of shares we bought and the closing market value of that share.

Now, the formula for computing NAV

Net Asset Value (NAV) = (Assets – Debts) / (Number of Outstanding units)

Assets = Sum of closing values of all underlying equity shares, debt securities etc

Debts = Money payable to the investors who asked for redemption of money

Number of Outstanding units = Number of units alloted to the investors as on date

By the end of the day, the number of units being alloted will be fixed

For example, there are 100 units being allotted. Using the 100

When a stock is at 52 week high there is scope for downside, is it similar for MF NAV value?

No. Because a mutual fund scheme is a collection fo stocks. There will be as many as 35 to 50 companies in which a mf scheme will be invested in.

So, no single company share will influence too much to a scheme's NAV

Further, as mutual fund investors, we need not worry about falling markets. This is because we should be long term investors in the market. Each SIP or investment we make cost averages our investment.

So falling markets help accumulate more units and there by helps improve our corpus

Of course, the scheme should deliver as well, preferably in a consistent fashion.

Which is the best place to get latest NAV Data?

Mutual Fund AMCs have to report NAV Data periodically (often daily) to AMFI. Since it is a statutory duty for them, NAV data can best be sourced from AMFI Website at

Most financial websites and even registrars like CAMS and Karvy source information from AMFI website.

The second best source of information is the mutual fund AMC website itself.