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.

SEBI Regulation 47 on WebNotes

NAV computation methodology for Indian mutual funds

Net Asset Value of an Indian mutual fund