Net Asset Value is the worth, in market terms, for each unit of the fund. It is
calculated as the market value of all investments in the fund less liabilities and
expenses divided by the outstanding number of units in the fund. Most schemes announce
their NAVs on a daily basis.
To further elaborate,
Sale or Subscription price = Applicable NAV.
Repurchase or Redemption Price = Applicable NAV *(1- Exit Load, if any)
Example: If the Applicable NAV of the Scheme is Rs.10 and the Exit Load applicable
at the time of investment is 1% if redeemed before completion of 1 year from the
date of allotment of units and the unitholder redeems units before completion of
1 year, then the repurchase or redemption price will be
= Rs. 10 * (1-0.01)
=Rs.9.90
Pursuant to payment of dividend, the NAV of the Dividend Option under the Plan /
Scheme falls to the extent of payout and statutory levy, if any