Net Asset Value Video Lecture | Investing in Stock Markets - B Com

whenever we talk about mutual funds you
must have heard about the acronym nav
that is net asset value it is nothing
but the value of a single unit of a
mutual fund like you have a price for
each share of a company you have a price
for a single unit of a mutual fund which
is nothing but nav now let's see how
anyways calculated total value of the
underlying stocks bonds deposits held by
a mutual fund - the daily expenses all
of this divided by the total number of
units available with various investors
on a particular given day gives you the
net asset value of the mutual fund on
that day
as the market value of these stocks
bonds of a mutual fund change every day
the nav of a mutual fund also changes
each day let's try to understand nav
with the help of an example let's assume
there's a mutual fund Z and as of today
the total value of stocks bonds deposits
held by the mutual fund - the daily
expenses is around 100 crore and there
are 10 crore units of this particular
mutual fund held by various investors so
what would be the nav of this mutual
funds L it would be rupees 10 as of
today as of today if you invest around
10 thousand rupees in mutual fund Z you
will be allocated around thousand units
of mutual funds Z as the nav of mutual
fund Z is rupees 10 today now after some
days you want to sell off these thousand
units of mutual funds Z then the nav of
mutual fund Z has increased rupees 12
from rupees 10 so thousand units into
nav 12 will give you 12 thousand rupees
hope you have understood what is nav
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