What is Mutual Fund NAV? How to check Mutual Fund NAV in India?

NAV stands for Net Asset Value, it is the value of an entity’s assets less the value of its liabilities. Here an entity is a particular fund house and the NAV is for a particular scheme say a index or an infra fund.

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.

Relevance to Mutual Fund investments:

Now when you invest in a mutual fund you get units of share which is proportionality 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 money.

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 a particular NAV on their website.
• Your fund house send’s you reports every week, month, etc. when every 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.

This blog post has been reproduced from squamble.com

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