Do you feel that NAV value is important

NAV signifies the number of units you are going to avail. The performance along with returns of the mutual fund schemes goes on to matter the most. Basically it connotes the value of mutual fund assets deducted by the liabilities of mutual funds. It could also denote the value at which you are going to sell the unit and this is if any load is applicable. This might seem to be a simple concept but still a lot of confusion exists among the users. In calculation of NAV formula will it go on to include all expenses? Would be it worthy to invest in a scheme which has higher or lower NAV. In the forums of mutual fund such queries seem to be common.

More about NAV?

NAV means the consortium of the price of all securities along with the liquid cash. After deduction of all liabilities it is being calculated on a per unit basis. If the prices of the majority of securities held by your rises then it is expected that NAV is going to rise and vice versa. The NAV has a strong relation to the prices of securities. Mandate suggests for a scheme to publish and interpret results of NAV on a daily basis.

In generic terms, NAV connotes a price that you end up paying for a mutual fund investment. It is possible to sell on NAV but the seller price could work out to be lower in NAV if there ceases to be an exit load. The exit load is calculated as per a certain percentage of NAV.

For example, in case if you plan to invest in a scheme of 10,000 with a NAV of 200. You are going to receive 10000/ 200 which work out to be 50 units. Now if the value of NAV increases to 250 and if you are planning to sell it. Then you are going to receive 12500 units ( 50 * 250) Now if the exit load stands at 1 % you are going to avail 12375 units.

Would NAV matter?

An investor might be buying and selling stocks at NAV, but they should confuse it with the market price of a stock. This is a price which is outlined by the investors present in the stock market. Once again this would depend upon the fundamentals along with the future prospects of the company. For this reason the book value of a stock could be different from the market value. Investors have no role in NAV as it works out to be the total value of a portfolio in a given scheme.

For this reason it is not beneficial to model your investment on NAV value of a scheme On comparison of a couple of NAV from two different sources would not specify a lot about the company. The total value of the schemes is illustrated which is a deduction of assets minus the liabilities.A Higher NAV means that the company has been performing really well.

Comments

ICICI BANK LOAN FRAUD: CBI FILES CHARGE SHEET AGAINST KOCHHARS

The CBI has filed a rate sheet towards former MD and CEO of ICICI Bank Chanda Kochhar, her husband Deepak Kochhar and Videocon Group founder Venugopal Dhoot in a Rs 3,250 crore mortgage fraud case, officers stated on Saturday. The enterprise has filed the rate sheet beneathneath sections 120-B (crook conspiracy) and 409 (crook breach of trust) of the Indian Penal Code (IPC) and provisions of the Prevention of Corruption Act, amongst others, they stated. The Central Bureau of Investigation (CBI) has named 9 entities, together with bsinesses and individuals, in step with the officers. The CBI has moved to report its very last document earlier than a unique courtroom docket in Mumbai with out the required requirement of sanction to prosecute Chanda Kochhar from ICICI Bank, the officers stated. A letter were despatched to the financial institution in search of the sanction however its reaction is awaited, they stated. Generally, the unique courtroom docket waits for the sanction earl...

FINANCIAL YEAR JUST GOT OVER. WHERE DO I THROW THESE TAX DOCUMENTS NOW

With monetary 12 months 2022-2023 finishing some days back, you may be tempted to push the tax-saving funding proofs to the back-burner. If you do now no longer hold a file, begin one. Even aleven though you or your business enterprise do now no longer want to publish helping files at the same time as submitting earnings-tax returns, there will be conditions while you'll be requested to supply them. The Income-Tax branch ought to call for those proofs, if the go back is picked up for scrutiny or re-evaluation. If so, you'll must produce them in 30 days. WHAT ARE THOSE FILES? They could encompass Form 16, funding evidence or top class fee receipts of your existence and fitness insurance, evidence of investments in equity-related financial savings schemes (ELSS), reproduction of Public Provident Fund (PPF) passbook or a stamped deposit receipt. Home lease agreements or even tour tickets for go away tour allowance (LTA) must be preserved. Additionally, in case you need to assert...

HEALTH INSURANCE: 5 REASONS WHY IT IS A VITAL INVESTMENT FOR THE YOUNGER GENERATION

The fitness of an man or woman is the maximum crucial factor in life. It is critical to guide a healthful and snug life. In India, the more youthful era is regularly ignorant of the significance of medical health insurance and the want to put money into it. Health coverage is an crucial device for monetary safety towards clinical emergencies and different fitness-associated troubles. It enables to cowl the price of clinical remedies, surgeries, hospitalization and different clinical fees. The more youthful era in India faces diverse demanding situations together with growing unemployment and inflation, in conjunction with life-style modifications which could motive fitness problems. Health coverage can assist to guard them from the monetary burden of clinical fees and might offer get admission to to high-satisfactory healthcare. In this article, we define a few foremost motives why more youthful generations must have a tremendous outlook on medical health insurance. THE GROWING P...

Themoneygrowth

Search This Blog