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How is the Net Asset Value (NAV) per unit of a mutual fund scheme calculated?

ATotal market value of assets divided by the scheme's total expense ratio
B(Market value of investments + receivables + other assets − liabilities) divided by the number of units outstandingcheck_circle
CThe face value of the unit plus the entry load
DThe purchase price of the securities held by the scheme

Correct answer

B. (Market value of investments + receivables + other assets − liabilities) divided by the number of units outstanding

lightbulbDetailed Solution

NAV per unit = (Market value of the scheme's investments + receivables + accrued income + other assets − liabilities − accrued expenses) ÷ number of units outstanding. It reflects the per-unit market worth of the scheme and is computed each business day.

Reference: NISM Series V-A Mutual Fund Distributors, Chapter 5.

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