10.

NET ASSET VALUE

Net Asset Value (NAV)

The net asset value of the fund is the cumulative market value of the assets fund net of its
liabilities. In other words, if the fund is dissolved or liquidated, by selling off all the assets in
the fund, this is the amount that the shareholders would collectively own. This gives rise to the
concept of net asset value per unit, which is the value, represented by the ownership of one unit
in the fund. It is calculated simply by dividing the net asset value of the fund by the number of
units. However, most people refer loosely to the NAV per unit as NAV, ignoring the "per
unit". We also abide by the same convention.

Definition of NAV

Net Asset Value, or NAV, is the sum total of the market value of all the shares held in the
portfolio including cash, less the liabilities, divided by the total number of units outstanding.
Thus, NAV of a mutual fund unit is nothing but the 'book value.'

11. BASIC CONCEPTS OF LOADS :

1. Entry Load: The load charged at the time of investment is known as entry load. It’s
meant to cover the cost that the AMC spends in the process of acquiring subscriber’s
commission payable to brokers, advertisements, register expenses etc. The load is
recovered by way of charging a sale price higher than the prevailing NAV.

2. Exist Load: Some AMC do not charge an entry load but they charged an exist load i.e.,
they deduct a load before paying out the redemption proceeds. Psychologically, investors
are much more willing to pay exist loads as compared to entry loads.

3. Unit: Units mean the investment of the unit holders in a scheme. Each unit represents one
undivided share in the assets of a scheme. The value of each unit changes, depending on
the performance of the fund.