What is NAV and how is it Calculated?

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Ever wondered what is NAV that keeps appearing in your SOAs every time? This video explains mutual fund NAV...
Ever wondered what is NAV that keeps appearing in your SOAs every time? This video explains mutual fund NAV in a much simpler and comprehensible way. The video gives you an opportunity to learn more about mutual fund NAV in uncomplicated everyday lingo so that you keep up with all that is happening in your account. Being susceptible to multiple market risks and apprehensions, you cannot really afford to get the wrong end of the stick when it comes to simple mutual fund terminologies. This video is relevant for anyone interested in understanding mutual funds better, from CA Inters and Brokers to any general investors looking forward to broadening their financial portfolio. The Net Asset Value of mutual fund is the perfect denominator of how exactly the mutual fund is performing. NAV is revealed at the end of every day after calculations are done on the basis of the day’s closing market prices, following a system completely different from stocks exchange that fluctuates with every passing second. The NAV is computed by considering the sum-up value to total cash & securities and dividing it by the number of outstanding shares after deducting liabilities. So, the simple formula to compute NAV is Assets minus Liabilities, divided by the total number of outstanding shares. All investors must always keep a close eye on the NAV in order to gain from market price fluctuations every day. To learn more on what is net asset value, check out this video now.
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