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Q.

What NAV actually is? Pleaswe explain it.

Tags: nav, pleaswe explain
Asked by gajalakshmi, 02 Dec '10 12:37 pm
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Answers (4)

1.

Net asset value (NAV) is a term used to describe the value of an entity's assets less the value of its liabilities. The term is most commonly used in relation to open-ended or mutual funds due to the fact that shares of such funds registered with the U.S. Securities and Exchange Commission are redeemed at their net asset value. However, the term may also be used as a synonym for book value or the equity value of a business. Net asset value may represent the value of the total equity, or it may be divided by the number of shares outstanding held by investors and, thereby, represent the net asset value per share.
Answered by LIPSIKA, 02 Dec '10 12:39 pm

 
  
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2.

NAV or Net Asset Value refers to the rate at which various mutual funds are quoted in the market and is the basis of the rates at which you can buy a specific fund or sell what you hold. Mutual Funds as you would be aware, is a Fund created by subscription from the public or other financial institutions or corporates. They raise a specif amount to creat a New Fund, the proceeds of which are then invested in various financial instruments - could be stocks/shares, debt funds, bonds or even gold or just in the index value.

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
Answered by Omega, 02 Dec '10 02:15 pm

 
  
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3.

NAV (Net Asset Value) is a financial entity's assets minus its liabilities. For funds and trusts, NAV is typically quoted on a per-share or per-unit basis; NAV is calculated as the portfolio value minus any debts, divided by the number of shares or units outstanding. When selling a fund investment, the price is based on NAV minus any redemption or deferred sales fees.

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.
Answered by saranathan Narasimhan, 02 Dec '10 02:04 pm

 
  
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4.

It is net asset value.............
Answered by HRITIK PANDE, 02 Dec '10 12:39 pm

 
  
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