Question

what is the Net Asset value of a unit, if rupees 4725 has to be invested to purchase 300 units of a mutual fund?

Answer 1

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 of scheme. let NAV increases to Rs. 250 in a year and you decide to sell it , then you will get 50 × 250 = 12,500 Rs.

a/c to question,
investing amount = 4725 Rs.
number of units of the scheme = 300 units.

so, NAV of the scheme = 4725/300= 15.75 per unit.

hence, 15.75 Rs is NAV of a unit of the scheme.