2006-10-17 18:12:18 · 5 answers · asked by babuak_2006 1 in Business & Finance ➔ Investing
The NAV of a fund is the value of its holdings;
the share price of a fund reflects the perceived value of the mutual fund manager(s) to pick stocks for its portfolio that will appreciate in value and thus make the fund holders a profit.....
2006-10-17 18:23:06 · answer #1 · answered by Gemelli2 5 · 0⤊ 0⤋
The NAV of a Mutual Fund varies with its weighted -average of the NAVs of various Investments in its composition whereas the Share Price (if you have meant it to be the Unit Price of the Mutual Fund quoted in Stock Exchange ) of the Mutual Fund varies depending upon the supply and demand i.e. the offer for sale and the demand for buy at a given time.
2006-10-17 20:40:05 · answer #2 · answered by ajmora 1 · 0⤊ 0⤋
Mutual fund invests in various companies to derive value. The value thus arrived less other liabilities provides the net asset value of the fund.
If the price of a share changes, and if a mutual fund holds the share, the change in the value of mutual fund will be proportionate to the total share holding and not to the extent of the change in the individual price of share.
2006-10-17 21:17:45 · answer #3 · answered by cvrk3 4 · 0⤊ 0⤋
You have to look at the investment made by a particular mutual fund.For example if u hold a mutual fund scheme which has invested most of its money in commodity sector(like sugar.metals etc)then the NAV will obviously less as theres a cooldown in the commodity prices.Visit valueresearchindia.com then look at ur mutual funds holding.investment in different sectors.You will get the answer.
2006-10-20 03:30:23 · answer #4 · answered by hummingdev 2 · 0⤊ 0⤋
NAV is not the market price like share value it is decided by the bankers to hold the fund value
2006-10-17 18:55:47 · answer #5 · answered by Ekant 2 · 0⤊ 0⤋