Investments are a great way to allow your money to earn for you. However, to yield the best results, you cannot remain completely uninvolved. These can only be achieved with constant monitoring and fine-tuning of investments. For those who have extensive financial investments, the proper management of these investments could mean the difference between success and failure in the markets. While mutual funds are considered safer than traditional investments owing to their diversity, it’s very important to constantly monitor them with the help. In fact, there are professional financial planners for this purpose. This article will explain the benefits of calculating the NAV of your mutual fund investments with a financial planner.

1. Analysing Mutual Fund NAV

2. What is NAV?

3. What is NAV?
 NAV is the value of assets less the
liabilities
 Net Asset Value is a more viable way of
reading into the value of an investment
 It calculates the value of a mutual fund,
including its cash value, sans its
liabilities

4. Term
 The term Net Asset Value is most often
used in connection with closed-ended
mutual funds
 The ‘per unit NAV’ of a fund indicates
how much it will cost an investor to buy
or redeem a single unit of the mutual
fund

5. How to calculate NAV of Mutual Funds?

6. Calculation of NAV
 A mutual fund’s NAV is calculated
using a set formula
 Calculating the total value of the mutual
fund’s assets
 Deducting liabilities
 Dividing the remaining figure by the number
of shares outstanding

7. Shares Outstanding
 Shares outstanding is the total number
of shares owned by the shareholders of
the company and company officials
 Excluding stock that has been
repurchased by the company

8. The Formula
NAV = (Total market worth of all securities
owned by the fund + liquid cash and
corresponding holdings - fund liabilities)
÷ total outstanding shares of the fund.

9. How NAV of Mutual Fund is useful?

10. For Investors
 Certain investors believe NAV to be an
exercise in futility, while others stress on its
importance
 Net Asset Value is simply the price of one
of the mutual fund’s units and is indicative
of the fund’s intrinsic value
 When one buys units in a mutual fund, one
buys them at NAV

11. For Financial Planning
 Mutual funds are often used for Financial
Planning
 There are qualified professionals aiding
investors in their financial planning
 The importance of sound financial planning
is such that there is a certificate for the
position, known as Chartered Financial
Planner or CFA

12. Financial Planners
 Financial planning is designed to cater to the
customer’s requirements
 Financial planners will work towards managing your
investments to achieve your goals like cash flow
management, retirement planning, or even planning for
your children’s education and marriage
 Maintaining an understanding relationship with the
customer is arguably the most important task of a
financial planner, and is known as “relationship
management”.

13. What are the benefits of analysing Mutual Fund NAV?

14. Benefits of Analysing NAV
 The ratio of assets to liabilities can be approached
at, which helps to determine the level of risk
 NAV helps to keep a tab on individual’s risk and
thus, ensures better risk management
 NAV can also be evolved to suit the specifications
of various new forms of investments, with its
numerous derivations such as Absolute Return,
Simple Annualised Return, Compounded Return,
and Compounded Annual Growth Rate

15. Regular Update of NAV
 Calculation of NAV is usually done on a
frequent basis
 Regularly checking on the performance of your
mutual funds with the help of an expert is all
that you really need to ensure that your
investments match your current objectives
 An application of the NAV formula, called the
Annual Total Return method is used for the
measurement of the measurement of mutual
fund performance

16. Why NAV should be considered?

17. Conclusion
 Net Asset Value of a mutual fund indicates
how well the fund manager has placed his
or her bets in the market
 In the case of investment in mutual funds,
calculating the value is little complex. Here
is where one can look at the concept of Net
Asset Value or NAV
 Thus, NAV is a very important tool for
investors

18. Thank You
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