How is DSP Mutual Fund NAV Relevant to Investors?
This is the price at which investors buy or sell the units of BlackRock mutual fund scheme. So obviously, it is highly relevant because it indicates the number of fund units an investor will receive. But some investors often mistake NAV for the share price. They think both work the same way. New investors think that they have got a good deal when they buy fund units at lower NAV. But this doesn’t make sense. It makes sense in the case of stocks as you get a bargain deal there. It is hard to judge whether a fund is expensive or cheap by its NAV; or its performance also. However, if a particular DSP fund is consistently performing well, then the NAV can be used as an indicator to gauge the fund’s performance. if you want to judge the return of DSP mutual fund scheme, do it by the return it has provided over the years rather than judging it by its NAV. How DSP Mutual Fund Nav Calculation is Done? NAV is an acronym for Net Asset Value. If you would’ve eavesdropped on a conv...