How is NAV calculated

POSTED BY TheZionView ON September 25, 2010 9:24 pm COMMENTS (3)

Two questions in this…


I know NAV is Net Asset Value…how it is calculated? does it depend on the amount the fund holds and current market value of its shares?


Does extreme redeemption affect NAV value? if i loosing money just cause other thinks the fund is not performing?

3 replies on this article “How is NAV calculated”

  1. Just to expand the formula.

    NAV = (Market Value of Investments held by the Fund – Expenses incurred in the
    sale of Assets + Accrued income net of Fund Management Charges + Value of any Current Assets – Value of any Current Liabilities – Provisions, if any)/ Number of Units existing at the Valuation Date

    Hope it will help you.

  2. prabeesh says:

    NAV=(assets-liabilities)/number of units

    this cant be formula for NAV in this case the if denominator is no of units then extreme redeemption will increase the NAV

  3. Shreenarayanan says:


    NAV is calculated by simply dividing assets from liability divided by total number of units.
    NAV=(assets-liabilities)/number of units.

    NAV varies daily because the security in the portfolio varies.

    Securites are nothing but stocks, bonds, etc.

    assets = securities hold in the portfolio like stocks,bonds etc
    Liabilities = fund manager fees and other fees

    Ya to my knowledge if ther is huge redemption it will afect NAV value

    Senior folks please let me know if i am right?


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