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​Track the Latest NAVs to Assess the Performance of Mutual Funds

Summary: We all want our money to grow and that’s the purpose of investment. But if one were to assess the performance of a vehicle and if this vehicle is Mutual Fund, then the right indicator would be keeping a track of latest NAVs. NAV is impacted directly by the market performance and in order to make the right decision regarding the scheme and type of fund, one must enroll with an investment company and seek assistance of professionals in the field.​


Investments that don’t reap gains are of no good and when planning your investments, one must analyze the performance of the same. So, when you think Mutual Funds​ it’s their NAV that one must track on a regular basis. NAV is Net Asset Value, which is per share value of your funds. If one were to calculate the latest NAV per unit, it would be market value of securities of a scheme less the total reoccurring expense and the whole divided by the total number of units if the scheme on any particular date. Or in a more technical language it is simply the per share value of funds on a particular day, as displayed in the market. Its calculation involves deduction of liabilities (except unit capital) of the fund from that of the realizable asset value and dividing it by the number of outstanding shares.

NAV = [Market/Fair Value of Scheme’s Investments + Receivables + Accrued Income + Other Assets - Accrued Expenses - Payables - Other Liabilities] / Number of Units Outstanding

NAV will be computed upto four decimal places.

Since market value of securities change every day, NAV of the scheme also varies.

It is this latest NAV that ascertains the performance of any mutual fund​. In India most of the investment companies propagate their mutual fund schemes basis the latest NAV of their product. And since it’s a performance indicator of a fund, it is important to keep a track of its value. One must do it not only after having invested your money into a scheme of securities but also before it. Day to day market fluctuations can have an effect on various investment types. An NAV of a mutual fund not only indicates the performance of an investment product but also helps the investor to measure the performance of the investment company as well.

So, when you are assessing the NAV of a mutual fund, you must first understand that its value is affected by the ups and downs in the market. Decoding the whole fundamental of how NAV of mutual funds depict their performance remember- when the NAV is higher, the mutual funds perform well; when the NAV is low for a certain span, the product might not perform that well; and it is not essential that every time if the NAV of a mutual fund is low the NAV would perform higher or yield high returns.

Though investment in mutual funds is considered as a major and famous tool to multiply one’s money and meet your financial goals, it is advised that you keep a regular track of the Latest NAVs​. Make a conscious effort to drive your funds by a beneficial vehicle of investment and meet your financial goals with promising and positive returns. So know your mutual funds and invest smartly. And if you are still not sure of how to go about investing in mutual funds and which type of it etc. would be the best to achieve your financial goals, depend up on a renowned name that will help you manage your money,

The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. Certain factual and statistical information (historical as well as projected) pertaining to Industry and markets have been obtained from independent third-party sources, which are deemed to be reliable. It may be noted that since NAM INDIA (Formerly known as Reliance Nippon Life Asset Management Limited) has not independently verified the accuracy or authenticity of such information or data, or for that matter the reasonableness of the assumptions upon which such data and information has been processed or arrived at; NAM INDIA (Formerly known as Reliance Nippon Life Asset Management Limited) does not in any manner assures the accuracy or authenticity of such data and information. Some of the statements & assertions contained in these materials may reflect NAM INDIA’s (Formerly known as Reliance Nippon Life Asset Management Limited)views or opinions, which in turn may have been formed on the basis of such data or information.

Before making any investments, the readers are advised to seek independent professional advice, verify the contents in order to arrive at an informed investment decision. None of the Sponsor, the Investment Manager, the Trustee, their respective directors, employees, affiliates or representatives shall be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on account of lost profits arising from the information contained in this material.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.


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