Dear Readers,
In this article we are presenting what is NAV (Net Asset Value) and how to calculate NAV..? Every one when it comes to investments in Funds or Unit Linked Insurance plan people will talk about NAV but much people re confused about that is NAV and how thing is being calculated. Lets see what is this NAV...
Name it self will indicate the meaning what it is, In this is term which describe the value of an entity's assets less the value of its liabilities. Hear liabilities could be any thing like all the charges( general this include fund management charges ).
In general this term will be used with o collective investment schemes like Mutual Funds and funds preset in unit linked insurance plan to represent the asset value.
But not only for this, it will be used to represent the value of a company as well.
NAV = ((Total Value of Investment) - (Liabilities ))/(Total Number of Units Out Standing)
This NAV will be calculated on daily basis. Most of the funds they will consider fund management charges on daily basis. So the NAV announced at the end of the day is after deducting the Fund Management charges.
For more information contact.
sriram.adviser@gmail.com
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