Mutual Funds · intermediate
NAV, Expenses & Pricing
How a scheme's NAV is worked out and disclosed, how its securities are valued, what the base and total expense ratios contain, how exit load and stamp duty work, which cut-off time decides the NAV applied, and what a segregated portfolio is.
- 01What is NAV? — Calculation & SignificanceNet Asset Value (NAV) is the per-unit value of a mutual fund scheme. This lesson explains the formula, what counts as assets and liabilities, when NAV is worked out and disclosed, and why a high or low NAV says nothing about value.
- 02Mark-to-Market & Fair Valuation PrinciplesMark-to-market means valuing a scheme's holdings at current market value rather than at purchase cost. This lesson explains how shares and debt securities are valued, what thinly traded and below investment grade mean, and why the method is meant to treat investors who enter, leave or stay fairly.
- 03Total Expense Ratio (TER) — Direct vs Regular PlansThe total expense ratio (TER) is the yearly cost charged to a scheme as a percentage of its net assets. This lesson explains the base expense ratio and what sits outside it, the caps under the 2026 Regulations, and why direct and regular plans have different NAVs.
- 04Entry Load (Abolished) & Exit Load — Impact on ReturnsA load is a charge on an investor's transaction in a mutual fund. This lesson covers the abolition of entry load and distributor transaction charges, the stamp duty that still applies to purchases, and how exit load is worked out, capped and used.
- 05How Fund Houses Calculate NAV DailyFund houses work out a NAV for every business day from that day's valuations, the income accrued and the expenses accrued. This lesson walks through the steps, the disclosure deadlines, and why purchases and redemptions do not by themselves move the NAV.
- 06Cut-off Timing — When Does Your NAV Apply?The cut-off time decides which day's NAV a purchase or redemption gets. This lesson sets out the cut-offs for liquid and overnight funds and for other schemes, why the money must also reach the scheme, and how switches and exchange trades are treated.
- 07Segregated Portfolios (Side Pockets) — NAV, Fees and UnitsA segregated portfolio, often called a side pocket, lets a scheme separate a debt security hit by a credit event from the rest of its portfolio. This lesson explains when it can be created, who gets its units, how the two NAVs work and what may be charged on it.