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Term

NET ASSET VALUE
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It is also commonly known as NAV. This is the value of each unit of a Mutual Fund for the given day, and this is the price at which a fund house would sell the units to investors or buy the units from investors (with applicable loads).

The market value of all the holdings of a mutual fund scheme are totaled, and this number is divided by the total number of units for that scheme to arrive at the NAV.

NAV = Market value of all the holdings of the scheme / total number of units for that scheme

Related Terms: NAV, Entry Load, Exit Load, Mutual Fund, MF
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