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METHODOLOGY OF CALCULATION OF NAV

METHODOLOGY OF CALCULATION OF PURCHASE PRICE / SALES PRICE


The NAV shall be calculated in accordance with the following formula, or such other formula as may be prescribed by SEBI from time to time:
NAV = Market or Fair Value of the Scheme’s Investments + Receivables + Accrued Income + Other Assets − Accrued Expenses − Payables − Other Liabilities / Number of Units Outstanding
For example: If the net assets of the Scheme, after considering applicable expenses, are Rs.10,45,34345.34 and units outstanding are 10,00,0000, then the NAV per unit will be computed as follows: 10,45,34,345.34 / 100,00,000 = Rs. 10.4534 per unit (rounded off to four decimals).


Repurchase Price:

For calculating the repurchase price, the exit load applicable at the time of investment shall be deducted from the applicable NAV of the Scheme. For example: If the applicable NAV of the Scheme is Rs. 10 and the Exit Load applicable at the time of investment is 1% if redeemed before completion of 1 year from the date of allotment of units and the investor redeems units before completion of 1 year, then repurchase price will be calculated as follows:


Step 1: Exit Load Amount = Applicable NAV * Exit Load at the time of investment in %
=Rs.10 * 1%
=Rs. 0.1


Step 2: Repurchase price = Applicable NAV - Exit Load Amount
=Rs. 10 - Rs. 0.1
=Rs. 9.9


Sales Price:

For calculating the Sales price, the entry load applicable at the time of investment shall be deducted from the applicable NAV of the Scheme. Please note that as per SEBI (Mutual Funds) Regulations 1996, no entry load can be charged to the Scheme. For example: If the applicable NAV of the Scheme is Rs. 10 and the Entry Load applicable is 0% at the time of investment, then the Sales Price will be calculated as follows:


Step 1: Entry Load Amount = Applicable NAV * Entry Load at the time of investment in %
=Rs. 10* 0%
=Rs. 0


Step 2: Sales price = Applicable NAV – Entry Load Amount
Rs. 10 - Rs. 0
=Rs. 10

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.