You make investments with your hard-earned money. With each investment, you aim to increase the total value of the assets at your disposal. The net asset value (NAV) of a mutual fund helps you keep track of your investments from one market cycle to another. It explains the total value of your mutual funds and determines your portfolio’s return in the long run.
It’s important at the end of each business day to calculate NAV. Mutual fund houses or accounting firms hired by them calculate this value.
NAV and mutual funds
Simply put, NAV is the value per unit of the mutual fund minus all expenses and liabilities. It is the value of each unit of the fund in the market. NAV reflects the per-unit value generated by a mutual fund for its investors.
Depending on your financial goals and risk-return profile, you can invest in a variety of … Read more