Valuation on WebNotes

Intrinsic value estimation methodology at PPFAS

Sat, 16 May 2026 00:00:00 +0000

The intrinsic value estimation methodology at PPFAS is the systematic framework through which the investment team at PPFAS Mutual Fund estimates the fundamental value of equity securities considered for inclusion in the Parag Parikh Flexi Cap Fund and the broader scheme range. The methodology operationalises the value-investing principle that price and value are distinct concepts, with intrinsic value derived from the discounted stream of future cash flows that the underlying business is expected to generate. The methodology is documented at amc.ppfas.com/schemes/investment-process/ and is operationalised by Chief Investment Officer (Equity) Rajeev Thakkar , Head of Research Raunak Onkar , equity fund manager Rukun Tarachandani, and the broader PPFAS research team.

NAV computation methodology for Indian mutual funds

Sat, 16 May 2026 00:00:00 +0000

The NAV computation methodology for Indian mutual funds is the standardised daily process by which the per-unit value of each scheme is calculated, comprising the market valuation of every security in the portfolio, the accrual of income and expenses, the application of plan- and option-specific adjustments, and the division of net assets by units outstanding. The methodology is prescribed by SEBI through Regulation 47 and the Eighth Schedule of the SEBI (Mutual Funds) Regulations, 1996 , implemented by valuation policies maintained by each AMC and operationalised by the fund accountant , with daily price inputs from two SEBI-recognised valuation agencies (CRISIL Ltd and ICRA Analytics).

Net Asset Value of an Indian mutual fund

Sat, 16 May 2026 00:00:00 +0000

The Net Asset Value (NAV) of an Indian mutual fund is the per-unit value of a scheme on a given valuation date, computed as the total market value of the scheme’s assets less its liabilities divided by the number of units outstanding at the end of the prior business day. NAV is the single reference price at which all transactions in an open-ended scheme (subscription, redemption, switch, SIP , STP, SWP) are processed, and the principal data point on which scheme returns, fact-sheet performance, and inter-scheme comparison are based.