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Here are the three simple points to help you understand what Net Asset Value is:
NAV is the illustration of a mutual fund scheme's functions in the market.
It reflects the actual market value of the fund the investor has invested in under their scheme and the purchase price for the other investors who wish to buy it.
The calculation of NAV takes place by adding the total value of a scheme divided by the number of units under it.
NAV is very crucial in a mutual fund scheme, as it presents the importance of one scheme over another to the investors when it comes to leveraging and pooling profits, while also increasing capital for the investor.
To learn more about what is net asset value, visit Mutual Funds Sahi Hai.
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