Outlook Money
It is the net asset value of a mutual fund; the performance of an MF scheme is measured by its NAV per unit.
It is calculated by dividing the market value of the securities in a plan by the scheme's total units on a specific date.
The daily fluctuations in the securities' market value result in changes in the NAV.
The NAVs of mutual fund schemes are released on the websites of the individual mutual funds and AMFI daily.
NAVs for mutual fund schemes are announced at the end of each trading day, unlike equities, which fluctuate each minute.
Mutual fund schemes allocate units based on the latest NAV.
MF applications are accepted even after the market closes, but the units will be issued based on the NAV of the next business day.
Redemption of mutual fund units is subject to the same cutoff time for NAV changes.
Source: AMFI
Compiled By Himani Verma
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