Net Asset Value

Net Asset Value or NAV is the market value of each unit for a particular mutual fund. It is calculated by subtracting the fund’s total liabilities from its total assets and divided by the outstanding number of units in the fund. Most schemes announce their NAVs on a daily basis.

Calculation of Sale and Repurchase Price Pursuant to SEBI Circular No. SEBI/HO/IMD/DF2/CIR/P/2018/92 dated June 05, 2018, it is clarified that the loads shall be charged as a percentage of Net Assets Value. This means that the applicable load as a percentage of NAV will be added to NAV to calculate the sale price and will be subtracted from NAV to calculate the repurchase price. In other words, the following formulae shall be used:

Sale Price = Applicable NAV *(1 + Sales/Entry Load, if any)

Repurchase Price = Applicable NAV *(1 - Exit Load, if any)

For example - If the applicable NAV is Rs 10.00, sales/entry load is 1 per cent and the exit/repurchase load is 1 percent then the sales price will be Rs 10.10 and the repurchase price will be Rs 9.90.