1. What is Mutual Fund NAV?

Net Asset Value (NAV) represents the per-share value of a mutual fund. It is calculated daily based on the closing market prices of the securities in the fund's portfolio and reflects the fund's actual value per share.

2. How Does NAV Calculation Work?

The calculator uses the standard NAV formula:

Where:

• \( Total\ Assets \) — Market value of all securities in the portfolio plus cash and other assets
• \( Total\ Liabilities \) — Fund expenses, management fees, and other obligations
• \( Total\ Shares\ Outstanding \) — Total number of shares issued by the mutual fund

Explanation: NAV represents the fair value of each share and is calculated at the end of each trading day based on closing market prices.

3. Importance of NAV in Mutual Funds

Details: NAV is crucial for investors as it determines the price at which they buy and sell mutual fund shares. It provides transparency about the fund's performance and helps investors track their investment value.

4. Using the Calculator

Tips: Enter total assets and liabilities in your preferred currency, provide the total number of shares outstanding, and select the appropriate currency. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How often is NAV calculated?
A: Mutual fund NAV is typically calculated at the end of each trading day after market close.

Q2: Why does NAV change daily?
A: NAV changes because the market values of the underlying securities in the fund's portfolio fluctuate daily.

Q3: Is a higher NAV better?
A: Not necessarily. NAV represents current value, but what matters is the fund's performance and future growth potential.

Q4: Can I buy mutual funds at NAV?
A: Yes, mutual funds are typically bought and sold at their NAV price, though some may have sales loads or fees.

Q5: What's the difference between NAV and market price?
A: For mutual funds, NAV is the price. For ETFs, there can be a difference between NAV and market trading price.