I have opt for growth in my mutual funds and suppose I gain some interest will it be add to my Nav?

Question

If it is add to my Nav then how will I be able to compare it with the current market Nav ,as my Nav will be higher after 2-3 years then the present Nav the mutual fund house has,will I just multiply it against the total number of nav.

Answer 1

the market nav is adjusted for the interest paid..
for expamle if you bought at Rs. 12 /unit
and it pays a interst of Rs. 1
on dat day the nav would fall by Rs.1
so the price is already adjusted..
and yes you need to add interest to get yoyr nav

Answer 2

I think you are talking about the cost basis = NAV on the day you bought the shares. Answer: No. The fund will issue you new shares, which will have their own cost basis = NAV when they were issued. This will change the average cost of your shares, which you need to keep a record of, although it may be printed on your statements.