what is NAV of a unit , if Rs.4725 has to be invested to purchase 300 units of a mutual fund?
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Answer:Net asset value (NAV) is the price at which you buy the unit of a scheme, it is the value of a mutual fund scheme's assets minus the value of its liabilities per unit. for example , if you invest 10,000 Rs in a scheme with NAV of Rs. 200, you will receive (10000/200) = 50units
Step-by-step explanation:The mathematical formula for calculating NAV is:
Net Asset Value (NAV) = (Assets – Debts) / (Number of Outstanding units)In simple words, NAV is the price which you pay to buy a unit of mutual fund scheme when you invest. You also sell it on NAV, but the sell price can be lower than NAV if there is an exit load. Exit load is always chargeable as a percentage of the NAV.
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