Axis, one of the top Asset Management Companies operating in the market, has a host of mutual funds products. And it is not surprising at all that some of the Axis Mutual Fund Schemes have outperformed in recent times. They have shown some remarkable leap, both, in the case of equity. Some equity multi cap funds, like Axis Focused 25 Fund, have even shown 5-year return upto 16%. Coming to the Axis Mutual Fund NAV, it is extremely important from an investor’s perspective because it is the price at which they buy or sell fund units. NAV stands Net Asset Value which represents the cost of each unit of the scheme. Axis Mutual Fund NAV represents the number of units of the Axis Mutual Fund an investor will receive. Or, tells him how much money they will receive if they sell the mutual fund unit. It also informs them whether an Axis Mutual Fund is doing well or not. Higher NAV translates into fund’s good performance. However, it is always advisable to gauge the fund’s NAV from the returns it has generated over the years.
What is the Calculation Procedure for Axis Mutual Fund NAV?
The term Net Asset Value sounds like some heavy calculating thing, isn’t it? Well, it is not that complex as it sounds. Indact, it is just some basic subtraction and division. More or less all AMCs follow the same calculation procedure. Even Axis Mutual Fund follows the same process. The Axis Mutual Fund NAV is obtained by dividing the total assets held in the form of securities by the total number of outstanding shares. Total net assets is calculated by subtracting any liabilities accrued by the fund from the market value of securities held by the fund. To simplify this, let’s take a look at the Net Asset Value formula:
NAV Formula = (Total Assets – Any Liabilities) / Number of Outstanding Shares
For instance, if the market value of securities held by the fund is INR 700 lakh and the mutual fund issues 20 lakh units of INR 10 each. Then, Axis Mutual Fund NAV will be INR 35.
When is the Axis Mutual Fund NAV Calculated?
As per SEBI mandate, all mutual fund NAVs will have to be calculated by the end of the day. Calculating the NAV during market hours is impossible as the prices of the stocks held by the mutual funds (underlying stocks) changes from time to time. This is the reason why NAV calculation for all of the Axis mutual funds is done at the end of the day. End of the day calculation of NAV helps to take into account the closing prices of all the stocks that is being held by Axis Mutual Fund.
How to Invest in Axis Mutual Funds?
If you want to invest or buy schemes under Axis Mutual Funds, you can do so by opting for the direct plan or the regular plan. Under the direct plan, you will have to buy the fund through the Asset Management Company (Axis) directly. You can do so by visiting their website or by offline means. You can buy Axis Mutual Fund units through the regular plan by visiting the websites of some financial technology companies. Also, you can invest a lump sum or make an SIP investments. Axis Mutual Fund SIP is a good way to counter market fluctuations.
Disclaimer: Mutual Fund Investments are subject to market risks, kindly read all scheme related documents carefully before investing.