What is The Net Asset Value in a Mutual Fund?

2 Feb 2021 Written by: Redaksi OCBC NISP

In a mutual fund, there is the term Net Asset Value (NAV), or in English it is called Net Asset Value (NAV).

Actually, what is NAV? NAV describes the total amount of funds under management, whether deposits, bonds, or shares in the portfolio of a mutual fund. We can find out the total NAV and the number of units from the fund factsheet which is updated every month by the Investment Manager.

Then, what is the difference with NAV / UP? Now, if you buy mutual funds, you will buy in units or units of participation. Usually we also call it the term NAV only. NAV / UP is the price or value for each unit of mutual fund participation, and is used as a reference for calculating the price of a mutual fund.

For example, mutual fund A, which is managed by Investment Manager B, has assets under management of IDR 10 billion with a total of 1 million units of participation. So, it can be calculated that the mutual fund price per unit is IDR 10 billion / 1 million units = IDR 10,000 per unit.

This NAV / UP will be calculated after the completion of the trading session, and will be issued by the Investment Manager. You can check on various media, one of which is Bloomberg.

Of course you need to know the NAV / UP when you want to buy or sell mutual funds, so you can estimate the number of units you will get. To get a profit, surely you want to sell at a higher NAV / UP than when you bought it! In addition, by knowing the NAV / UP movements of each mutual fund, you can also learn more deeply about the performance of a mutual fund.

It should be noted, NAV / UP does not represent an expensive or inexpensive mutual fund, because the NAV / UP price will continue to rise in line with the increase in the number of assets and managed funds.

Now, quickly access the One Mobile Mutual Fund feature, or contact the nearest OCBC NISP customer service!

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