Which of the following best describes the Net Asset Value of a scheme?

Question

Accepted Answer

C. {'text': 'Fair worth per unit at current market prices', 'label': 'C'}

1. NAV is defined as the true worth of one unit of the scheme.
2. It equals the net realisable value per unit if all holdings were sold today.
3. Face value stays fixed at Rs. 10 and is unrelated to daily NAV changes.
4. NAV is computed daily using mark-to-market prices of scheme holdings.
_Source: NISM Series V-A: Mutual Fund Distributors Workbook (Dec 2019), Ch 2 "Concept and Role of a Mutual Fund", §2.1.4_

Answer

{'text': 'Face value of one unit issued today', 'label': 'A'}

Answer

{'text': 'Original issue price of a unit in the NFO', 'label': 'B'}

Answer

{'text': 'Total assets minus sponsor initial stake', 'label': 'D'}