alexa
Indianmoney.com Missed Call Number
Home Articles Net Asset Value - NAV

Net Asset Value - NAV

IndianMoney.com Research Team | Updated On Monday, November 17,2014, 02:48 PM

5.0 / 5 based on 1 User Reviews

Net Asset Value - NAV

 

 

The net asset value of the fund is the cumulative market value of the assets fund net of its liabilities. To put into other words, if the fund is dissolved or liquidated, by selling off all the assets in the fund, this is the amount that the shareholders would collectively own. This gives rise to the concept of net asset value per unit, which is the value, represented by the ownership of one unit in the fund. It is calculated simply by dividing the net asset value of the fund by the number of units. Though, most people refer loosely to the NAV per unit as NAV, ignoring the "per unit". We also abide by the same convention.

Calculation of Net Asset Value

The most significant part of the calculation is the valuation of the assets owned by the fund. Once it is calculated, the NAV is simply the net value of assets divided by the number of units outstanding. The detailed methodology for the calculation of the asset value is given below.

Asset value is equal to
Sum of market value of shares/debentures
+ Liquid assets/cash held, if any
+ Dividends/interest accrued
- Amount due on unpaid assets
- Expenses accrued but not paid

 

Did you find this article useful? You can Rate us
5.0 / 5 based on 1 User Reviews
Article Author

IndianMoney.com Research Team

The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.

Subscribe to our Youtube Channel

 
Get the Best Financial Advice on Accident PlanClick Here

Most Popular

Why one must never neglect estate planning

07 January 2014, Tuesday

Things to Know About Hybrid Mutual Funds

26 November 2013, Tuesday

What is Car Insurance? Why is it important?

21 October 2009, Wednesday

Latest Stories

Personal Loan for Self Employed

19 September 2018, Wednesday

What Is A Government Bond?

19 September 2018, Wednesday

Unsecured Loan

18 September 2018, Tuesday

MCLR vs Base Rate

18 September 2018, Tuesday

Popular Tags

GST
UK
 
Get the Best Financial Advice on Accident PlanClick Here

Calculators

Get It now!