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Confused About My Mutual Fund NAV: 42.6 vs. 36.703?

Ramalingam

Ramalingam Kalirajan  |9852 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Mar 17, 2025

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
Yazdi Question by Yazdi on Mar 16, 2025Hindi
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NAV in my account statement is 42.6 while in reality NAV is 36.703

Ans: There are a few reasons why the NAV in your account statement (Rs. 42.6) differs from the actual NAV (Rs. 36.703). Here are the possible explanations:

Possible Reasons for the Difference
1. Growth vs. Dividend Option
Your account statement might show a growth plan NAV.

The real NAV you checked could be of the dividend option.

Growth plans have higher NAVs as profits are reinvested.

2. Regular vs. Direct Plan
Regular plans have higher NAVs due to distributor commissions.

Direct plans have lower NAVs as they have no commission costs.

Check whether you are comparing the same plan type.

3. NAV on Different Dates
NAV changes daily based on market performance.

Your account statement might reflect an older NAV.

Check if you are comparing NAVs of the same date.

4. Fund Merger or Restructuring
Some funds merge with others over time.

This leads to recalculated NAVs.

Check if your fund has undergone any restructuring.

What Should You Do?
Compare the NAV of the exact same plan type and option.

Check the latest NAV on the AMC website.

Contact the mutual fund house or registrar (CAMS/Karvy).

Ensure you are looking at the latest statement.

If the issue persists, contact customer support to verify.

Let me know if you need further clarification.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |9852 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 29, 2024

Asked by Anonymous - Nov 25, 2023Hindi
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Most of the Mutual Fund are manipulating the NAV Rate. They are issuing the units at 2 to 3% above than the rate on realization of Fund. Similarly on redemption NAV value much less than the ordered date NAV. Hence such situation, whom did I approach for correcting the actual NAV and how I can establish the NAV value. Heavy cheating is doing in this MF Investments.
Ans: I understand your concern about Mutual Fund NAV (Net Asset Value) manipulation. It's important to know that SEBI (Securities and Exchange Board of India) strictly regulates Mutual Funds to protect investors. Let's clear some things up:

NAV and its Calculation:

NAV is the per unit price of a Mutual Fund scheme. It simply reflects the total value of all the investments the fund holds divided by the number of units outstanding.
There's no room for manipulation here. SEBI has strict guidelines for valuing fund holdings, ensuring a fair NAV.
Understanding NAV Differences:

You might have noticed a difference between the NAV when you buy and the NAV when you redeem. This can happen due to market fluctuations.
The market value of the underlying investments (stocks, bonds) changes daily. So, the NAV reflects these changes.
Getting Help:

If you still feel uncomfortable about a specific NAV, here's what you can do:
Contact the Mutual Fund company directly. They can explain the NAV calculation and how it applies to your situation.
Reach out to SEBI's SCORES portal (https://scores.gov.in/) to register a complaint.
Actively Managed Funds:

Remember, unlike Fixed Deposits with a fixed return, Mutual Funds invest in the market. There will be ups and downs, and returns can vary.
Actively managed funds aim to outperform the market, but that doesn't guarantee higher returns every time.
The Role of a CFP:

A Certified Financial Planner (CFP) can help you choose actively managed funds that suit your risk tolerance and investment goals.
They can also guide you on understanding NAV and market movements to make informed investment decisions.
Remember:

SEBI is there to protect your interests. Don't hesitate to reach out to them if you have any concerns.
Actively managed funds can be a great way to grow your wealth, but understand the inherent risks involved.
By understanding NAV and how it works, you can invest in Mutual Funds with more confidence.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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