How is Principal Mutual Fund NAV Calculated?

How is Principal Mutual Fund NAV Calculated?

Financial terms like, NAV, dividends, returns and many more, are something which keeps on hovering around in an investor’s mind. Most importantly, investors only care about returns. Return is like the final step, first is knowing NAV. It stands for Net Asset Value. The reason why knowing the NAV plays an important role in the life of investors is because it represents the price of a fund unit. It is the value at which investors buy and sell the units of the fund in a mutual fund. Basically, the NAV tells investors how many units of the mutual fund scheme they are going to receive. So for instance, if you are buying into any Principal Mutual Fund, thePrincipal Mutual Fund NAV is going to tell you how many fund units you will get for the money you want to invest. Now you must be intrigued how does Principal calculate its NAV. We’ll help you get there in a moment.

What is the Principal Mutual Fund NAV Calculation Formula?

NAV calculation is done by dividing the net assets by the number of outstanding shares.

Assets of the funds are the market value of securities held by the fund. In order to determine the net assets, liabilities of the fund should be subtracted from the market value of securities held by the fund (total assets). More or less, every fund house has the same calculation procedure to determine the NAV. Let’s breakdown ​Principal Mutual Fund NAV​ in the form of a simple formula: Net Assets = Total market value of securities held by the fund - Liabilities accrued by the fund NAV = Net Assets / Total number of outstanding shares When is the Principal Mutual Fund NAV Calculated?

According to SEBI mandates, all mutual fund NAVs will have to be calculated by the end of the day. NAV calculation during market hours can be quite tiresome as the prices of underlying stocks fluctuates constantly. This is the reason why NAV calculation for all of the Principal mutual 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 Principal Mutual Fund​.

Is Principal Mutual Fund SIP an Option to Invest in Franklin Mutual Funds ?

There are two ways in which you can invest your money in Franklin Mutual Fund Lumpsum and Principal 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 the Principal ​Mutual Fund​ route, wherein a certain amount of your monthly income (as you wish) will go towards mutual fund investment.

How to Invest in Principal Mutual Funds?

If you wish to invest or buy any of the schemes under Principal Mutual Funds, you can do so by opting for the direct plan or the regular plan. Under the direct plan, you will have to buy the fund through the Asset Management Company (Principal) directly. You can do so by visiting their website or by offline means. You can buy Principal Mutual Fund units through the regular plan by visiting the websites of some financial technology companies. There are two ways in which you can invest in Principal Mutual Funds. First, if you have enough savings and wish to invest in mutual funds, do so by the lumpsum way. On the contrary, if you don’t have savings, take the ​Principal Mutual Fund SIP (Systematic Investment Plan) route to invest in Principal mutual funds. SIP investment gives you the advantage of rupee-cost averaging.

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