What is NAV in Mutual Fund? A Complete Guide for Beginners
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In the past few years, the Mutual Funds scheme has emerged as a popular choice among investors from all over the nation. Yet, the performance of mutual funds highly depends upon NAV (net asset value). It represents the value per share for a particular fund which is calculated daily by dividing funds total assets by a number of units.
In this blog, you will learn NAV full form, its importance and how NAV is calculated in mutual funds.
NAV Full Form in Mutual Funds?
The NAV full form is Net Asset Value, which is a mathematical calculation used to determine the per unit value of a mutual fund. In simple words, it represents the market value of all the assets held by the fund minus its liabilities and then divided by the total number of units. This method will help you to understand the value of mutual funds at a given time. The mutual fund NAV or net asset value is calculated after the market is closed and then published in the report.
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Moving on, let’s see how NAV is calculated using a simple process just for you.
How is NAV Calculated?
Net asset value calculation is a straightforward process answering what is NAV value formula is in simple words: