NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Net Asset Value, Total Expense Ratio and Pricing of Units
Which statement about NAV of open-ended mutual fund schemes is correct?
NAV is the scheme's net assets divided by the number of units outstanding. Net assets are the market value of assets less liabilities. It is declared each business day for open-ended schemes, and it does not include any entry load.
- ANAV is the price at which units trade on the stock exchange for all open-ended schemes
- BNAV is computed only once a week for equity schemes
- CNAV is the net assets of the scheme divided by the number of units outstandingCorrect
- DNAV includes the entry load charged to investors
Explanation
NAV equals net assets divided by units outstanding. It is declared every business day for open-ended schemes, and entry loads are not permitted in India. Exchange prices of listed units may differ from NAV.
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