Net asset value (Nav):
Net asset value is funds value which is usually expressed in share value. Mostly in many countries NAV is declared after when trading ends.
Net Asset Value of the fund is the cumulative market value of the assets of the fund net of its liabilities. NAV per unit is simply the net value of assets divided by the number of units outstanding. Buying and selling into funds is done on the basis of NAV-related prices.
Net asset value is funds value which is usually expressed in share value. Mostly in many countries NAV is declared after when trading ends.
Net Asset Value of the fund is the cumulative market value of the assets of the fund net of its liabilities. NAV per unit is simply the net value of assets divided by the number of units outstanding. Buying and selling into funds is done on the basis of NAV-related prices.
NAV is calculated as follows:
NAV= Market value of the fund’s investments+Receivables+Accrued Income– Liabilities-Accrued Expenses
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Number of Outstanding units
The NAV of a scheme has to be declared at least once a week. However many Mutual Fund declare NAV for their schemes on a daily basis. As per SEBI Regulations, the NAV of a scheme shall be calculated and published at least in two daily newspapers at intervals not exceeding one week. However, NAV of a close-ended scheme targeted to a specific segment or any monthly income scheme (which is not mandatory required to be listed on a stock exchange) may be published at monthly or quarterly intervals.
Load:
This is the amount paid to the broker when shares are purchased. They are paid as percentage of the amount invested. There are two types of loads (1) entry load (2) exit load.
A load is normally collected to cover up the front-end costs and also processing costs. Some funds do not charge this load and are called ‘no load fund’. At present most of the companies are charging load at 2-2.25%.
NAV= Market value of the fund’s investments+Receivables+Accrued Income– Liabilities-Accrued Expenses
_______________________________________________________________________
Number of Outstanding units
The NAV of a scheme has to be declared at least once a week. However many Mutual Fund declare NAV for their schemes on a daily basis. As per SEBI Regulations, the NAV of a scheme shall be calculated and published at least in two daily newspapers at intervals not exceeding one week. However, NAV of a close-ended scheme targeted to a specific segment or any monthly income scheme (which is not mandatory required to be listed on a stock exchange) may be published at monthly or quarterly intervals.
Load:
This is the amount paid to the broker when shares are purchased. They are paid as percentage of the amount invested. There are two types of loads (1) entry load (2) exit load.
A load is normally collected to cover up the front-end costs and also processing costs. Some funds do not charge this load and are called ‘no load fund’. At present most of the companies are charging load at 2-2.25%.
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