I'm wondering whether a higher or lower Net Asset Value (NAV) is more beneficial. I need clarification on how the NAV affects my investments and which one I should prefer.
7 answers
EchoSoulQuantum
Sat Nov 02 2024
The belief that a Mutual Fund's performance is inversely proportional to its NAV is a misconception. This notion is widely misunderstood and often leads to incorrect assumptions about the quality of a fund.
Stefano
Sat Nov 02 2024
For instance, a fund with an NAV of Rs 22 can outperform a fund with an NAV of Rs 85 if it has a well-executed investment strategy and skilled management.
Stefano
Sat Nov 02 2024
NAV stands for Net Asset Value and it represents the per unit value of the fund. It is calculated by dividing the total assets of the fund by the number of units held by investors.
IncheonBeautyBloom
Sat Nov 02 2024
Investors should focus on the fund's historical performance, management team, and investment objectives rather than solely relying on its NAV. This will help them make informed decisions and choose the right fund for their investment needs.
Raffaele
Sat Nov 02 2024
The NAV of a fund does not indicate its performance or potential. A fund with a higher NAV is not necessarily better than one with a lower NAV. Similarly, a fund with a lower NAV is not necessarily worse.