Net Asset Value (NAV) of the fund is the price at which the investor buys or sells a unit of the fund. This implies that it is extremely important to keep a track of the NAV of a fund more often. Same applies to Reliance Mutual Fund existing investors or people who’re willing to invest in the future. By keeping a regular track of the Reliance Mutual Fund NAV, investors can get an overview of the fund’s performance. A dip in the Net Asset Value of any of the Reliance schemes states that the fund is not doing well. Whereas, a surge in the NAV speaks about the fund’s good performance. As you might be aware of Nirmala Sitharaman’s recent announcement of the corporate tax cuts. This news was like a gust of air for the slowly dying NAVs in the Indian mutual fund industry. Now the NAVs have picked up bringing a smile to the faces of investors.
How is the Reliance Mutual Fund NAV Calculation Done? Reliance Mutual Fund NAV calculation is not some kind of rocket science. It is simple and easy to do. Infact, you can try it once you’re done reading this article. Reliance calculates the NAV of the scheme by dividing the total net assets of the fund by the total number of outstanding units. To determine the total net assets, Reliance subtracts any liabilities from the fund’s total assets. Reliance Mutual Fund NAV Formula: NAV = (Total Assets - Any Outstanding Liabilities) / Total Number of Outstanding Shares For example, if the market value of securities held by the Reliance fund is INR 600 lakh and the mutual fund issues 20 lakh units of INR 10 each. Then, Mutual Fund NAV will be INR 30. How often is the Reliance Mutual Fund NAV calculated? Well, the answer to that question is “everyday”. It is impossible to calculate the NAV during market hours as the prices of the stocks held by the mutual funds (underlying stocks) changes from time to time. This is why the NAV calculation for any of the Reliance funds is done at the end of the day. End of the day calculation of NAV helps to take into account the closing prices of all the stocks that is being held by Reliance Mutual Fund. What are the ways to Invest in Reliance Mutual Fund? An investor has two options by which they can invest in Reliance Mutual Fund Schemes - lumpsum and Systematic Investment Plan. Lumpsum investment is where the investor invests all the sum at once in a scheme of his choice. On the other hand, some of us don’t have a huge sum amount at our disposal that we can invest at once - these people can invest through SIPs. Through SIP you can pay a small monthly amount towards your mutual fund investment. If you wish to invest or buy any of the schemes under Reliance Mutual Funds, you can do it by opting for the direct plan or the regular plan. Under the direct plan, you will have to buy the fund through the AMC (Reliance MF) directly. You can invest by visiting their website or through offline measures. You can buy Reliance Mutual Fund units through the regular plan by visiting the websites of some financial technology companies. Disclaimer: Mutual Fund Investments are subject to market risks, kindly read all scheme related documents carefully before investing.
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Anika Sharma
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