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How ICICI Mutual Fund NAV is Calculated?

Before we dive deep into the matter, letu2019s get our basics straight. By that I mean, letu2019s understand what NAV stands for and what it is actually. NAV is a popular abbreviation, which fund managers and investors never get tired of. It stands for Net Asset Value. It represents a fundu2019s per unit market value. So, when an investor wants to buy units of a certain mutual fund scheme, they have to buy the units of the scheme at the prevalent NAV. It is the price at which an investor buys units from fund houses or AMCs (Asset Management Companies) and also, sells back units to them. Similarly, different ICICI Mutual Fund schemes will have different NAVs. Now that we are clear about what NAV is, letu2019s hope on to how ICICI Mutual Fund NAV calculation is done.

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How ICICI Mutual Fund NAV is Calculated?

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  1. How ICICI Mutual Fund NAV is Calculated?

  2. Before we dive deep into the matter, let’s get our basics straight. By that I mean, let’s understand what NAV stands for and what it is actually. NAV is a popular abbreviation, which fund managers and investors never get tired of. It stands for Net Asset Value. It represents a fund’s per unit market value. So, when an investor wants to buy units of a certain mutual fund scheme, they have to buy the units of the scheme at the prevalent NAV. It is the price at which an investor buys units from fund houses or AMCs (Asset Management Companies) and also, sells back units to them. Similarly, different ICICI Mutual Fund schemes will have different NAVs. Now that we are clear about what NAV is, let’s hope on to how ICICI Mutual Fund NAV calculation is done.

  3. ICICI Mutual Fund NAV Formula ICICI Mutual Fund NAV calculation is not some kind of rocket science. It is simple and easy to do. Infact, you can try it once you’re done reading this article. ICICI calculates the NAV of the scheme by dividing the total net assets of the fund by the total number of outstanding units. To determine the total net assets, ICICI subtracts any liabilities from the fund’s total assets. NAV = (Total Assets – Any Liabilities) / Total Number of Outstanding Shares For instance, if the market value of securities held by the fund is INR 800 lakh and the mutual fund issues 20 lakh units of INR 10 each. Then, ICICI Mutual Fund NAV will be INR 40.

  4. When is ICICI Mutual Fund NAV Calculated? It is impossible to calculate the NAV during market hours as the prices of the stocks held by the mutual funds (underlying stocks) changes from time to time. This is why the NAV calculation for any of the ICICI funds is done at the end of the day. End of the day calculation of NAV helps to take into account the closing prices of all the stocks that is being held by ICICI Mutual Fund.

  5. How does a high or low ICICI Mutual Fund NAV matter? Many amateur investors get confused between stock price and NAV. They think both work the same way. New investors think that they have got a good deal when they buy fund units at low NAV. But this doesn’t make sense. It makes sense in the case of stocks as you get a bargain deal there. It is hard to judge whether a fund is expensive or cheap by its NAV; or its performance as well. Of course, a higher NAV represents that the fund is on a positive track. It is also an indicator of the fund’s longevity. But honest;ly, if you want to judge the return of ICICI mutual fund scheme, do it by the return it has provided over the years rather than judging it by its NAV. Thus, it will be wise to say that the NAV is irrelevant when it comes to judging the performance of any mutual fund scheme.

  6. Disclaimer: Mutual Fund Investments are subject to market risks, read all scheme related documents carefully before investing.

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