{"id":11495,"date":"2022-05-13T15:45:45","date_gmt":"2022-05-13T10:15:45","guid":{"rendered":"https:\/\/kuvera.in\/blog\/?p=11495"},"modified":"2022-05-13T15:45:45","modified_gmt":"2022-05-13T10:15:45","slug":"what-is-nav","status":"publish","type":"post","link":"https:\/\/kuvera.in\/blog\/what-is-nav\/","title":{"rendered":"What is NAV?"},"content":{"rendered":"<div>\n<p><span class=\"style-scope yt-formatted-string\" dir=\"auto\">Presenting the best of investor education content, <\/span><a class=\"yt-simple-endpoint style-scope yt-formatted-string\" dir=\"auto\" spellcheck=\"false\" href=\"https:\/\/www.youtube.com\/hashtag\/curatedbykuvera\">#CuratedByKuvera<\/a><span class=\"style-scope yt-formatted-string\" dir=\"auto\">. This video by @FranklinTempleton explains what is NAV and how it is calculated. <\/span><\/p>\n<p>&nbsp;<\/p>\n<\/div>\n<p><iframe loading=\"lazy\" title=\"What is NAV? | Best of Investor Education\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/NCyRUQ8aUOo?list=PLDSzQdT9nLmBOsyCmLDKSz_PQcWdePZgI\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe><\/p>\n<div id=\"top-row\" class=\"style-scope ytd-video-secondary-info-renderer\">\n<div id=\"subscribe-button\" class=\"style-scope ytd-video-secondary-info-renderer\">\n<div id=\"notification-preference-button\" class=\"style-scope ytd-subscribe-button-renderer\">\n<div class=\"fill style-scope yt-interaction\">\n<div id=\"content\" class=\"style-scope ytd-expander\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div id=\"top-row\" class=\"style-scope ytd-video-secondary-info-renderer\">\n<div id=\"subscribe-button\" class=\"style-scope ytd-video-secondary-info-renderer\">\n<div id=\"notification-preference-button\" class=\"style-scope ytd-subscribe-button-renderer\">\n<div class=\"fill style-scope yt-interaction\">\n<div id=\"content\" class=\"style-scope ytd-expander\">\n<div class=\"style-scope ytd-video-secondary-info-renderer\"><\/div>\n<div>\n<p>What is NAV?<\/p>\n<p>When you invest in a mutual fund, the AMC allocates units of the scheme to you based on the Net Asset Value (NAV).\u00a0 It is the combined market value of all assets that the fund holds on a particular day.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<div class=\"fill style-scope yt-interaction\">\n<div id=\"content\" class=\"style-scope ytd-expander\">\n<p>How is it calculated?<\/p>\n<p>It is calculated by subtracting the liabilities and expenses from the total assets and dividing the difference by the total number of outstanding units.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<p>Why is this calculation important?<\/p>\n<p>It helps you calculate the number of units you can buy as an investor. For example, if the NAV of the scheme is Rs. 25 and the amount being invested is Rs. 25,000, the investor will receive 1000 units.<\/p>\n<p>&nbsp;<\/p>\n<p>While redeeming your investments, that is when you withdraw your money from the scheme, you get the current value of the unit. That means, if the applicable NAV per unit of the scheme at the time of withdrawal is Rs. 50, you will receive Rs. 50,000 for your 1000 units which you earlier bought for Rs. 25,000 (at Rs.25 NAV).<\/p>\n<p>&nbsp;<\/p>\n<p>Another reason why it is important is to gauge the performance of the scheme. The calculation is done by comparing the NAV of the scheme over two different points to know how well or poorly the scheme has performed.<\/p>\n<p>For e.g. If the NAV per unit of the scheme today is Rs. 25 and 2 years ago it was Rs 15, you know that the scheme has delivered an absolute return of 66.67% over 2 years or 29.10% every year over a period of 2 years.<\/p>\n<p>&nbsp;<\/p>\n<p>To sum it up, the top three reasons why it is important:<\/p>\n<p>\u2022 Helps investor to understand how many units can be bought.<\/p>\n<p>\u2022 Helps predict the amount the investor will receive while redeeming the investment.<\/p>\n<p>\u2022 Measures the performance of the scheme.<\/p>\n<p>&nbsp;<\/p>\n<div id=\"top-row\" class=\"style-scope ytd-video-secondary-info-renderer\">\n<div id=\"subscribe-button\" class=\"style-scope ytd-video-secondary-info-renderer\">\n<div id=\"notification-preference-button\" class=\"style-scope ytd-subscribe-button-renderer\">\n<p>Start investing through a platform that brings goal planning and investing to your fingertips. Visit <a href=\"https:\/\/www.kuvera.in\/\"><strong>kuvera.in<\/strong><\/a> to discover <a href=\"https:\/\/kuvera.in\/blog\/direct-plans-better\/\"><strong>Direct Plans<\/strong><\/a> and <strong><a href=\"https:\/\/kuvera.in\/explore\/fixed-deposit\/c\/all\">Fixed Deposits<\/a><\/strong> and <a href=\"https:\/\/kuvera.in\/user\/login\"><strong>start investing today.<\/strong><\/a><\/p>\n<\/div>\n<div id=\"notification-preference-button\" class=\"style-scope ytd-subscribe-button-renderer\">\n<div class=\"fill style-scope yt-interaction\">\n<p>&nbsp;<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div id=\"content\" class=\"style-scope ytd-expander\"><\/div>\n<p>#MutualFundSahiHai #KuveraSabseSahiHai #PersonalFinance #InvestorEducation<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Presenting the best of investor education content, #CuratedByKuvera. This video by @FranklinTempleton explains what is NAV and how it is calculated. &nbsp; What is NAV? When you invest in a mutual fund, the AMC allocates units of the scheme to you based on the Net Asset Value (NAV).\u00a0 It is the combined market value of [&#8230;]<\/p>\n<p><a class=\"btn btn-secondary understrap-read-more-link\" href=\"https:\/\/kuvera.in\/blog\/what-is-nav\/\">Read More&#8230;<\/a><\/p>\n","protected":false},"author":11,"featured_media":11512,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[99,593],"tags":[605,746,729,12,747,67,401,748,96,730,610],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is NAV | Kuvera<\/title>\n<meta name=\"description\" content=\"How to know if your mutual fund scheme is performing well? 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