Economics · Financial Markets
What does the term Net Asset Value (NAV) of a Mutual Fund unit fundamentally represent, and how is it calculated?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The discounted present value of the future cash flows expected from the underlying stock portfolio.
- 2The market value per unit of the scheme, calculated by dividing the market value of the fund's investments minus liabilities by the total number of outstanding units.✓
- 3The current market price at which the fund's units are actively traded between buyers on the stock exchange.
- 4The total value of the fund's assets after deducting only the daily operating distribution expenses.
Correct answer
The market value per unit of the scheme, calculated by dividing the market value of the fund's investments minus liabilities by the total number of outstanding units.
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