What is NAV And How It Is Important?

What is NAV And How It Is Important?

LIC has some Plans which are NAV based because those funds are invested in market and LIC’s NAV is similar to Mutual Fund NAVs. Here we will talk about Mutual Fund NAV’s.

If you want to check your LIC NAV then you may search for it on Life Insurance Corporation’s Website.

Also Read: LIC Policy Status Online

If you want to make an investment in share market or in mutual fund there are various things that you should know. So from these, Today I am going to discuss NAV. It is very important for you to understand what is NAV. if you want to invest in a mutual fund. Those who do not want to directly invest in the stock market or they do not know the stock market, they can invest in the mutual fund. By investing in the mutual fund, your investment is in the hands of experts and in this way you can reduce the risk of direct investment in the stock market. Today, we will learn here that what is the NAV in the mutual fund, how it is counted and how important it is.

First of all, what is NAV

Net Asset Value, or NAV, means the value of the total property. Net asset value, or NAV, in any of the mutual fund, after deducting the liabilities from the total value of all the shares of the portfolio, including cash, the outstanding balance is obtained by dividing it by the total number of units remaining.

Also Read: ULIP vs Mutual Fund

NAV fund is per unit’s total asset value (excluding expenditure) and at the end of each day’s business, it is calculated by the asset management company (AMC) of that fund. On any given day, if that mutual fund is terminated, then the unitholder of that mutual fund will get the price for each unit as per the rate of that unit of that day. In a way, you can say that NAV is the book value of any mutual fund unit.

Most of the unit’s base value in the mutual fund is Rs 10 or Rs.100. In each business day, the NAV curve of the unit increases according to the market value of the fund’s portfolio.

Also Read: ULIP How it Works?

Importance of NAV

NAV refers to the growth of the unit of a mutual fund. If you invest Rs 12 per unit in a fund at NAV and after one year, if the NAV of that unit goes up to 15 rupees per unit then that fund has 25% growth. It is wrong to believe that the mutual fund with lower NAV will give good returns and mutual fund with more NAV fund will give fewer returns.

From the NAV of any fund, it can be known that how any fund has performed in the past but in future how any fund will perform cannot be decided by the NAV. So it all depends on market condition, It can go up or down.

Also Read: ELSS Mutual Fund

Where To Check NAV?

You can check NAV of your Mutual Fund company’s website or Directly go to AMFI’s website

If you are a regular investor you may know all these but if you are new then kindly read all the terms and conditions and risk involved before investing in any fund.


Check current Cash Value of your ULIP Policy

Check current Cash Value of your ULIP Policy

ULIP Policy NAV: If you ever asked yourself, How to check current cash value of your ULIP policy? then then keep reading. Most of us don’t know how to calculate the maturity value or current cash value. You just guess the value, right? or may be calling your LIC agent every month to check the value.

In this Digital India, you can get all the information of your policy anytime from your smartphone itself. Now, no need to call your agent or visit the branch.

To know the current cash value of your ULIP policy, you need to know the number of units you have. I hope you already know how many units you have in your policy.

LIC sends a separate letter to your postal address with the unit allotment details after bond papers are issued. If you are unable to find the allotted units, you can register on LIC Website. Once you have your account registered, you can enroll all your policy in your account to have a glance of all your policy at one place. To Enroll, you must have all your policy details handy. ie. Policy Number.

Once you know the units, visit to LIC NAV page at www.licindia.in and locate the policy NAV.


Check current Cash Value of your ULIP Policy


For example:

Let’s assume you have 50,000 units of Market Plus 1 Growth fund.

  • Now we need to check Todays NAV.
  • At the time of writing Market Plus 1’s NAV was Rs.23/unit (As of 8th August 2017)
  • Hence Current Cash value: 50000 x 23= 1150000

Your current Cash value will be Rs.1150000/-

As you know NAV may go up or may go down as per market condition. It’s good to keep checking the cash value of your investment once in six month.

Other ways to check your policy NAV

Your Branch: Your Branch will be able to tell you the exact value of your policy. Please contact your nearest LIC Branch.

Your Agent: Your agent has all the information of your policy, consider contacting them.

Customer Care: Call LIC Customer care and ask your policy NAV and current value.

If you are looking for Traditional Policy status, you can check it here.