before going to invest into any mutual funds. this net asset value (NAV) will help you for valuation of assets or mutual fund. that will make you to understand the earning of a unit of mutual fund which you are going to buy.

1. NET ASSET
VALUE
(NAV)
Analyzing Mutual Fund
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Presented By
Pramod Kumar Sah
MBA-II Year

2. Introduction
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Net Asset Value (“NAV”)market value
 Net asset value (NAV) represents a fund’s per
share market value
 Used as a basis for valuation of investment
company shares
 Used to determine your cost when you buy
shares
 Used to determine how much you receive when
you sell (“redeem”) your shares
 NAV is calculated at the end of each trading day.

3. 3
 Net Asset Value (“NAV”)
 The term Net asset value is most often
used in connection with closed –ended
mutual funds
 The ‘per unit NAV ‘ of a fund indicates
how much it will cost an investor to buy
or redeem a single unit of the mutual
fund.
Term

4. Importance
 certain investors believe NAV to be an
exercise un futility, while others stress on its
importance
Net Asset Value is simply the price of one of
the mutual fund’s units and is indicative of
the fund’s intrinsic value
When one buys units in a mutual fund, one
buys them at NAV
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For Investor

5. Financial planning is designed to cater to
the customer’s requirements
Financial planner will work towards
managing your investments to achieve your
goal like cash flow management,
retirement planning, or even planning for
your children’s education and marriage
Maintaining an understanding relationship
with the customer is arguably the most
important task of a financial planner and is
known as “relationship management”
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For Financial Planning

6. Calculation of NAV
Where,
 Calculating the total value of the mutual fund’s
assets
 Deducting liabilities
 Dividing the remaining figure by the number of
shares outstanding
 Shares outstanding is the total number of shares
owned by the shareholders of the company and
company officials
 Excluding stock that has been repurchased by the
company
NAV = Market Value of Assets -
Liabilities
Shares Outstanding

7. Example
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let's say a mutual fund has $45 million invested in
securities and $5 million in cash for total assets of
$50 million. The fund has liabilities of $10 million.
As a result, the fund would have a total value of
$40 million.
The total value figure is important to investors
because it is from here that the price per unit of a
fund can be calculated. By dividing the total value
of a fund by the number of outstanding units, you
are left with the price per unit—the form of
measurement in which NAV is usually quoted.
If the fund had 4 million shares outstanding, the
price-per-share value would be $40 million divided
by 4 million, which equals a NAV of $10 per share.

8. 8
Suppose you save $100 each month in you mutual fund
Mutual funds let you buy fractions of shares.
Although the fund is down 1.3% = [(9.87-10)/10]= [(9.87/10)-1],
your investment is only down [(60.5944*9.87)/600]-1= 0.29%.
Change
from prior
month NAV NAV
Investment
per month
Number of
shares you
buy
$10.00 $100.00 10.0000
2% 10.20$ $100.00 9.8039
-3% 9.89$ $100.00 10.1071
-4% 9.50$ $100.00 10.5283
5% 9.97$ $100.00 10.0269
-1% 9.87$ $100.00 10.1282

9. THANK
YOU!
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