Net Asset Value (NAV) reflects a fund's per-unit value. It is calculated daily by dividing total assets by total outstanding units.
A higher or lower NAV doesn’t indicate better returns. It only shows the fund's per-unit value at a specific time.
NAV is computed daily after market closure, incorporating the day’s market fluctuations and expenses.
Your investment units are allotted based on the NAV of the transaction day. Higher NAV means fewer units and vice versa.
As the market value of securities fluctuates daily, the NAV of a scheme also varies on a day-to-day basis.
When funds declare dividends, their NAV drops by the dividend amount, reflecting the payout.
Expense ratios reduce NAV. A higher expense ratio impacts the fund’s growth and indirectly affects your returns.
In SIPs, regular investments buy units at varying NAVs, averaging your cost and mitigating market volatility risks.
While NAV is crucial for investments, it is not the only factor. Evaluate fund performance, objectives, and costs for better decisions.
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