Valuation on WebNotes

NAV calculation rules for Indian mutual funds

Mon, 18 May 2026 00:00:00 +0000

The NAV calculation rules for Indian mutual funds are the regulatory framework prescribed by SEBI governing how Net Asset Values are computed, published and audited. The rules are codified in the SEBI (Mutual Funds) Regulations 1996 and the SEBI master circular on mutual funds, with detailed valuation methodology covering each asset class held by mutual fund schemes.

For an Indian retail investor, the NAV calculation rules are largely operational background, but they matter because they determine the reliability and consistency of the daily NAV that drives subscription and redemption pricing. A consistently and accurately computed NAV is essential for the mutual fund framework to be trustworthy at scale.

NAV computation: how mutual fund NAV is calculated

Mon, 18 May 2026 00:00:00 +0000

NAV computation is the daily process by which mutual fund AMCs in India calculate the per-unit Net Asset Value of each scheme they manage. The computation is regulated by the SEBI (Mutual Funds) Regulations 1996 and accompanying SEBI valuation circulars, with detailed methodology disclosed in each scheme’s Scheme Information Document (SID). The NAV computation produces the price at which units are subscribed and redeemed each business day, making it one of the most operationally critical mutual fund processes.

Net Asset Value (NAV) of a mutual fund

Mon, 18 May 2026 00:00:00 +0000

Net Asset Value (NAV) is the per-unit value of a mutual fund scheme, calculated each business day by the Asset Management Company (AMC) as the scheme’s total assets minus liabilities divided by the number of units outstanding at the close of that business day. NAV is the price at which units are issued (subscription) and redeemed, and the daily NAV change captures the scheme’s net investment performance. In the Indian mutual fund framework, NAV computation is regulated by the SEBI (Mutual Funds) Regulations 1996 , with detailed valuation norms published in SEBI circulars and the AMC’s Scheme Information Document (SID).

Mutual fund fund accountant (India)

Wed, 13 May 2026 00:00:00 +0000

The mutual fund fund accountant (India) is the entity or department that computes the daily mark-to-market net asset value of each scheme, maintains the scheme-level books of account, charges allowable expenses and operates the accounting of unit-holder distributions. The role is constituted under Regulations 47 to 50 and the Eighth Schedule of the SEBI (Mutual Funds) Regulations, 1996 , framed under the SEBI Act, 1992 . Every asset management company is required to ensure the function is carried out by competent personnel with appropriate systems, whether retained in-house or outsourced.

Daily MTM for debt mutual funds

Tue, 12 May 2026 00:00:00 +0000

Daily mark-to-market (MTM) for debt mutual funds refers to the operational process through which the market value of every debt security held by a scheme is updated each business day, and the resulting changes flow directly into the scheme’s NAV . In India, this process is mandated by SEBI and is operationalised through price feeds from two SEBI-empanelled valuation agencies, with NAVs required to be submitted to AMFI by 11 p.m. each business day.

Mark-to-market (MTM) for debt holdings in mutual funds

Tue, 12 May 2026 00:00:00 +0000

Mark-to-market (MTM) valuation of debt holdings is the practice of valuing a mutual fund’s fixed-income portfolio at current market prices (based on current market yields) rather than at the original purchase price or on an amortised cost basis. Under full MTM, the NAV of a debt mutual fund rises when market interest rates fall (because bond prices rise when yields fall) and falls when market interest rates rise (because bond prices fall when yields rise). This price sensitivity to interest rate movements is the primary source of NAV volatility in debt funds.