How Asset Management Companies (AMCs) charge their fees or expenses on units of mutual funds? How does it impacts the Net Asset Value (NAV) of units?
- Balwant Pawar
The Net Asset Value (NAV) is the worth (in market terms) of each unit of the fund. It is calculated as the market value of all investments in the fund less liabilities and expenses divided by the outstanding number of units. Simply put, the NAV of a mutual fund unit is calculated after deducting management expenses incurred by the AMC.
This article was originally published on November 10, 2015.
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