Net Asset Value

NAV lets us know how a fund is performing i.e. by understanding the value or worth of a single unit in a fund we can discern the value of the fund, as a whole, on a given day.

What is Net Asset Value?

Net Asset Value (NAV) which gives the fund's value that an investor will be entitled to at the time of withdrawal of investmentis the value of a fund's asset less the value of its liabilities per unit.

When investing in Unit Linked insurance policies, the policyholder gets the option of investing in equity or debt market or both through the funds offered in the insurance product. Based on the policyholder’s choice, the premium that is paid for the ULIP policy is divided into equity or debt fund or a combination of both. Each of these funds is made up of units. And each of these units has an associated market value on a given day. This market value is called Net Asset Value or NAV. Its represents the value per unit.

NAV is dynamic, as it depends on the overall fund value, the number of units available in the fund and the constant shifts in the market.

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