NAV is calculated as : (Total Assets - Liabilities) / No of units outstanding
The NAV is calculated up to 2 decimal places for equity oriented mutual funds and up to 4 decimal places for index funds and all types of debt/ liquid/ money market funds. Thus the number of units allotted to an investor will include fraction units.
All mutual fund schemes (except for fund of fund schemes) shall update their latest NAVs by 11 p.m. of the same day and Fund of Fund schemes shall update the latest NAVs by 10 a.m. the following business day.
Short term deposits not exceeding 20 percent of the net assets of the scheme and for a period not exceeding 91 days may be made for the purpose of redemption of units or paying dividends to the unit holders.
SPONSOR Should have at least five years' experience in the financial services industry and Contribute at least 40 percent of the networth of the asset management company (AMC).
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