How ICICI Mutual Fund NAV is Calculated?

How ICICI Mutual Fund NAV is Calculated?

Before we dive deep into the matter, let’s get our basics straight. NAV is a popular abbreviation, which fund managers and investors never get tired of. It stands for Net Asset Value. It represents a fund’s per unit market value. So, when an investor wants to buy units of a certain mutual fund scheme, they have to buy the units of the scheme at the prevalent NAV. It is the price at which an investor buys units from fund houses or AMCs (Asset Management Companies) and also, sells back units to them. Similarly, different ICICI Mutual Fund schemes will have different NAVs. Now that we are clear about what NAV is, let’s hop on to how ​ICICI Mutual Fund NAV​ calculation is done.

ICICI Mutual Fund NAV Formula ICICI 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. ICICI 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, ICICI subtracts any liabilities from the fund’s total assets.

NAV​ = (Total Assets - Any Liabilities) / Total Number of Outstanding Shares For instance, if the market value of securities held by the fund is INR 800 lakh and the mutual fund issues 20 lakh units of INR 10 each. Then, ICICI ​Mutual Fund​ NAV will be INR 40.

When is ICICI Mutual Fund NAV Calculated?

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 ICICI 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 ICICI Mutual Fund.

How does a high or low ICICI Mutual Fund NAV matter?

Many amateur investors get confused between stock price and NAV. They think both work the same way. New investors think that they have got a good deal when they buy fund units at low NAV. But this doesn’t make sense. It makes sense in the case of stocks as you get a bargain deal there. It is hard to judge whether a fund is expensive or cheap by its NAV; or its performance as well. Of course, a higher NAV represents that the fund is on a positive track. It is also an indicator of the fund’s longevity. But honestly, if you want to judge the return of ​ICICI mutual fund scheme​, do it by the return it has provided over the years rather than judging it by its NAV. Thus, it will be wise to say that the NAV is irrelevant when it comes to judging the performance of any mutual fund scheme.

Is ICICI Mutual Fund SIP an Option to Invest in ICICI Mutual Funds ?

There are two ways in which you can invest your money in ICICI Mutual Fund Lumpsum and ​ICICI Mutual Fund SIP​. The call is yours to take. If you have ample savings stalling in your account that doesn’t give you the returns that you desire, invest it through lumpsum to earn higher returns. And if you want to take a monthly approach, take ICICI Mutual Fund SIP route, wherein a certain amount of your monthly income (as you wish) will go towards mutual fund investment.

Disclaimer: ​Mutual Fund Investments are subject to market risks, kindly read all scheme related documents carefully before investing in mutual funds.