Multiple choice

Net Asset Value (NAV) of a mutual fund scheme is defined as

  1. assets minus liabilities

  2. assets per unit

  3. assets minus liabilities per unit

  4. None of the above

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

NAV is the per-unit value of a mutual fund scheme, calculated as (Total Assets - Total Liabilities) divided by total outstanding units. Option A is the fund's net worth, not per unit. Option B is incomplete. Option C is the complete correct definition - net assets per unit.