Mutual Funds

NAV

Net Asset Value is the per-unit market value of the securities held by a mutual fund scheme.

What it means in practice

NAV is published at the end of each business day: total assets minus liabilities, divided by outstanding units. A low NAV does not make a fund cheap — returns depend on percentage change in NAV, not its absolute level.

Related terms

Expense Ratio

The annual fee, as a percentage of assets, that a mutual fund or ETF charges its unit holders.

AUM

Assets Under Management is the total market value of the investments a fund or manager holds.

Exit Load

A fee deducted when mutual fund units are redeemed before a defined holding period.

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