The Factors that Determine the NAV of Mutual Funds - HDFC Sales Blog

Hdfcsales16 Jun, 2022Finance

The Net Asset Value (NAV) of a Mutual Fund is the price you pay to buy a unit of the fund. It is one of the factors that give you an idea of how the Mutual Fund has been performing over the years since its inception. The formula to determine a Mutual Fund?s NAV is: Net Asset Value = (Total Assets under Management- Liabilities)/ No. of Units Outstanding Let?s say a Mutual Fund has a portfolio size of Rs.10 crores. The fund has expenses (liabilities) of about 1.5 crores and about 10 lac units outstanding. The NAV of the Fund is = Rs (10cr- 1.5cr) /10lacs = Rs85/-. Unlike stocks, the book value of the Mutual Fund is the same as its NAV.