Equity schemes managed strong NAV gains which boost their assets was a new in some financial newspapers. What is the full form of NAV used as in above headlines? [Central Bank of India 2010]

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Equity schemes managed strong NAV gains which boost their assets’ was a new in some financial newspapers. What is the full form of NAV used as in above headlines? [Central Bank of India 2010]

A	Nill Accounting Variation
B	Net Accounting Venture
C	Net Asset Value
D	New Asset Venture

Explanation:

Detailed explanation-1: -Net asset value (NAV) represents a fund’s per-share intrinsic value. It is similar in some ways to the book value of a company. NAV is calculated by dividing the total value of all the cash and securities in a fund’s portfolio, minus any liabilities, by the number of outstanding shares.

Detailed explanation-2: -When the value of the securities in the fund goes up, the net asset value goes up. Conversely, when the value of the securities in the fund goes down, the NAV goes down: If the value of securities in the fund increases, then the NAV of the fund increases.

Detailed explanation-3: -"Net asset value, ” or “NAV, ” of an investment company is the company’s total assets minus its total liabilities. For example, if an investment company has securities and other assets worth $100 million and has liabilities of $10 million, the investment company’s NAV will be $90 million.

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