What NAV actually is? Pleaswe explain it.
As per SEBI regulations, Fund houses are allowed a certain percentage as administrative expenses. The money subscribed is used for buying in the market. At the end of each working day, they work out the latest value as per market closing rates and then minus the pro-rata annual expenditure and arrive at a value. This will be the NAV.
Eg. Say X Fund raised 1000 crores which they invested. The original Initial Fund Offer would be at Rs. 10 per unit, which means the ...more
The SEC requires mutual funds and investment trusts to recalculate NAV at least once a day. This is typically done after the major markets close. Being publicly traded, closed-end funds are exempt from daily reporting of NAV. The NAV of major mutual funds are reported much like stock prices, and can be found in the financial section of many newspapers.