What is Net Asset Value (NAV) of a scheme?
The performance of a particular scheme of a mutual fund is denoted by Net Asset Value
(NAV).
Mutual funds invest the money collected from investors in securities markets. In simple
words, NAV is the market value of the securities held by the scheme. Since market value
of securities changes every day, NAV of a scheme also varies on day to day basis. The
NAV per unit is the market value of securities of a scheme divided by the total number of
units of the scheme on any particular date. For example, if the market value of securities
of a mutual fund scheme is INR 200 lakh and the mutual fund has issued 10 lakh units of
INR 10 each to the investors, then the NAV per unit of the fund is INR 20 (i.e.200
lakh/10 lakh). NAV is required to be disclosed by the mutual funds on a daily basis.
The NAV per unit of all mutual fund schemes have to be updated on AMFI‟s website and
the Mutual Funds‟ website by 9 p.m. of the same day. Fund of Funds are allowed time till
10 a.m. the following business day to update the information.
How is the applicable NAV determined?
Liquid schemes – Subscription
1. Where the application is received up to 2.00 p.m. on a day and funds are available for
utilization before 2:00 p.m. without availing any credit facility, the closing NAV of the
day immediately preceding the day of receipt of application.
2. Where the application is received after 2.00 p.m. on a day and funds are available for
utilization on the same day without availing any credit facility, the closing NAV of the
day immediately preceding the next business day; and
3. Irrespective of the time of receipt of application (before or after 2:00 p.m. on a day),
where the funds are not available for utilization before 2:00 p.m. without availing any
credit facility, the closing NAV of the day immediately preceding the day on which the
funds are available for utilization.
Liquid schemes – Redemption
1. Where the application is received up to 3.00 pm – the closing NAV of day
immediately preceding the next business day; and
2. Where the application is received after 3.00 pm – the closing NAV of the next business
day.
Other than Liquid Schemes – Subscription For amount less than INR 2 lakh
1. Where the application is received up to 3:00 p.m., closing NAV of the day on which
the application is received.
2. Where the application is received after 3:00 p.m., closing NAV of the next business
day. For amount equal to or more than INR 2 lakh
1. Where the application is received up to 3:00 p.m. and funds are available for
utilization before 3:00 p.m., closing NAV of the day on which the application is received.
2. Where the application is received after 3:00 p.m. and funds are available for utilization,
closing NAV of the next business day.
3. Irrespective of the time of receipt of application (before or after 3:00 p.m.), where the
funds are not available for utilization, closing NAV of the day on which the funds are
available for utilization.
Other than Liquid Schemes – Redemption
1. Where the application is received up to 3.00 pm – closing NAV of the day on which
the application is received; and
2. Where the application is received after 3.00 pm – closing NAV of the next business day.
