Mutual Fund NAV

What is a mutual fund NAV?

Investopedia defines NAV as  “it represents a fund’s per share market value. This is the price at which investors buy (“bid price”) fund shares from a fund company and sell them (“redemption price”) to a fund company. It is derived by dividing the total value of all the cash and securities in a fund’s portfolio, less any liabilities, by the number of shares outstanding. An NAV computation is undertaken once at the end of each trading day based on the closing market prices of the portfolio’s securities.”
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Basically, when an investor invests in a mutual fund scheme, they can buy as many units of the scheme as their investment will allow depending upon the scheme’s current NAV value.

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For example, if a scheme’s NAV is Rs. 20, and the investor is investing Rs. 5000, then the investor will receive 5000/20 = 250 units of the scheme.

When the investor is holding the investment (that is, has not yet sold it), he/she can verify the current value of the investment by looking up the scheme’s NAV on any day. For example, if the above investor’s scheme declares an NAV of Rs. 25 on a particular day, then the value of the investment is 250 x 25 = Rs 6,250.

When the investor is ready to withdraw (or sell or redeem) his/her investment, the amount of money they will get will be based on the NAV of the scheme at the time of withdrawal as well. For example, in the above case, if the scheme declares an NAV of Rs. 30 on a day, and the investor withdraws all the units (or in other words, sells them back to the fund company), the fund company will pay a sum of Rs. 7,500 to the investor (250 x 30 = 7,500).

So, it is always good for an investor to know the latest NAV so that they can make a decision regarding whether to hold or redeem their units. With, an account holder does not need to look up different places to find out what the current investment value is. They just simply need to login to their account, and we will show them the current value right away. That is because, FundsIndia receives the latest Mutual fund NAV values from the fund companies every day and updates all the portfolios in the system.

So, investing with FundsIndia is not only easy and free, it also keeps you completely up to date without having to do any manual work outside the system. It is all automatic!

You can also check any fund or scheme’s NAV at anytime by looking at its page in our mutual fund explorer.

You can also look at our NAV lookup page.

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