GK
BANKING AWARENESS AND SEBI
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Net Asset Value
|
|
|
Net Actual Value
|
|
|
Net Annual Value
|
|
|
Net Average Value
|
Detailed explanation-1: -NAV stands for Net Asset Value. The performance of a mutual fund scheme is denoted by its NAV per unit. NAV per unit is the market value of securities of a scheme divided by the total number of units of the scheme on a given date.
Detailed explanation-2: -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. The NAV calculation is important because it tells us how much one share of the fund should be worth.
Detailed explanation-3: -What is Net Asset Value (NAV)? Also known as NAV, this is the price of one unit of a fund. NAV is calculated at the end of every working day between Monday and Friday.
Detailed explanation-4: -If you are investing in mutual funds, you generally tend to aim high and shoot low. This is the reason mutual funds with a high net asset value (NAV), have gained a bad reputation on the street. A fund with a high NAV is considered expensive and wrongly perceived to provide a low return on your investments.