Investment in Mutual fund
When an investor wants to invest in the mutual fund he/she can go to Investment Company which they prefer.
When an investor put give their money to investment company inventors’ money are converted into NAV. Therefore their
NAV growth
NAV is the total asset value (net of expenses) per unit of the fund and is calculated by the Asset Management Company (AMC) at the end of every business day. Net asset value on a particular date reflects the realizable value that the investor will get for each unit that he is holding if the scheme is liquidated on that date
NAV per share = Current value of fund holdings / No. of fund shares
Eg: Rs.100, 000 / 3,333 = 30
The NAV is calculated by dividing the current value of the portfolio by the number of fund shares outstanding. For open-ended mutual funds, new shares are issued as money flows into the fund. Likewise, the number of shares outstanding is reduced as investments are redeemed.
The NAV increases as the value of the portfolio's holdings increase. For example, if a share of a stock fund costs Rs.30 today and Rs.18 one year ago, there has been a gain (or profit) of Rs.12 a share, or about 66%, before fund expenses. The change in a fund's NAV determines its performance. Comparing NAV performance enables investors to differentiate funds on a relative basis.
When an investor wants to invest in the mutual fund he/she can go to Investment Company which they prefer.
When an investor put give their money to investment company inventors’ money are converted into NAV. Therefore their
NAV growth
NAV is the total asset value (net of expenses) per unit of the fund and is calculated by the Asset Management Company (AMC) at the end of every business day. Net asset value on a particular date reflects the realizable value that the investor will get for each unit that he is holding if the scheme is liquidated on that date
NAV per share = Current value of fund holdings / No. of fund shares
Eg: Rs.100, 000 / 3,333 = 30
The NAV is calculated by dividing the current value of the portfolio by the number of fund shares outstanding. For open-ended mutual funds, new shares are issued as money flows into the fund. Likewise, the number of shares outstanding is reduced as investments are redeemed.
The NAV increases as the value of the portfolio's holdings increase. For example, if a share of a stock fund costs Rs.30 today and Rs.18 one year ago, there has been a gain (or profit) of Rs.12 a share, or about 66%, before fund expenses. The change in a fund's NAV determines its performance. Comparing NAV performance enables investors to differentiate funds on a relative basis.