A Mutual fund can be likened to a big basket of fruits that a group of friends bought by contributing different amounts of money. There are different fruits in the basket, each of which has its own value. The amount of money contributed is equal to a specific number of ownership shares in the basket. How much each person owns in the basket of fruits is the Net Asset Value (NAV) per share. NAV is a mathematical process that is accepted worldwide by all financial institutions. The NAVs of MFs are published daily in newspapers and websites.
You may be interested in the following related articles as well.
comment closed