How To Calculate NAV ?

A very preliminary example on how to calculate the NAV.
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[@vikashsingh9587]

Outstanding academic channel for fund accounting.

[@aakashmehta3388]

Hello Ma'am Thank you so much for this video because of this I have cleared my interview.🙏🙏

[@TheFundAccountant]

Congratulations Aakash. I am glad that you find my videos helpful. Keep watching

[@terezaaraujo9869]

i wish my teacher was good as you, Thanks

[@TheFundAccountant]

Thank you. Keep watching

[@Tina-gp4rg]

Thank you very much.

[@TheFundAccountant]

Welcome. Keep watching.

[@RS-cm3wd]

Request for a video on Unrealized gain/loss impact and concept in NAV calcs. Thank you for the this video.

[@TheFundAccountant]

Thanks for your feedback. I am planning to do a video on this soon.

[@bvijay2374]

Yes

[@aravindhmuthukumar6388]

Please explain the nav with trade involved as well. Very useful

[@TheFundAccountant]

Hello. Thanks for your feedback. I will make one Video for NAV impact on trades soon.

[@amritachatterjee3308]

Hi... thank you very much for the effort to make the concept clear ....here i have one question if we are having x date for security,then the price of the security also will decrease by .4 .... otherwise the dividend distribution will impact nav..... again thanking you for the hardwork to explain the topic so well.

[@TheFundAccountant]

Yes you are right, no Ex-date the price of the security goes down, that how the NAV of the fund will not impact the dividend Corporate action. Keep watching.

[@user-kq4nl1cr5c]

How NAV will affect in Small cap mutual funds as SIP Mode?

[@user-gc3js6gr8y]

Hello Ma’am Thank you so much for knowledge sharing and your videos are very helpful to understand Fund Accounting concepts My request is, could you please make a video on Accrual concept with few examples Thank you 😊

[@TheFundAccountant]

Thank you. I have created some videos on income and expense accruals. You can check those. Keep watching.

[@sandeshkumar9156]

what is shares outstanding here?

[@mounikagunda3729]

Is dividend-- income for fund?

[@naggarajunidamaanuri7269]

Yes pls do video which includes dealing

[@TheFundAccountant]

Sure. Keep watching.

[@sivajidevarala5346]

Good Explanation

[@TheFundAccountant]

Thanks for your Feedback. Keep watching.

[@NiteshKhinchi_09]

Thank you 😊

[@TheFundAccountant]

Keep watching.

[@luislopes806]

This Video was very understandable and explanatory. I would like to thank you for your willingness to help us understanding concepts about economics and accounting studies! Some investment advisory firms concurrently manage different types of investment products such as: (1) Mutual Funds, (2) Hedge Funds and (3) Private Funds. Favor: Could you make a video about the different types of funds available in the finance market?

[@TheFundAccountant]

I had created a video on different types of mutual funds: kzbin.info/www/bejne/sJiXaXSYrL2CnKssi=KXxusOr0q9PyZ0n0 I can still create some more videos on the same. Keep watching.

[@healthcare2658]

Please do the video on Transfer agency what is the main role they are doing in fund accounting...

[@TheFundAccountant]

Hi. Thanks for your feedback. I will come up with a video about role of Transfer Agency in fund accounting.

[@balakrishnabandi1548]

thank you mam

[@TheFundAccountant]

Welcome, Keep watching.

[@NM-bs6lm]

Hello Ma'am, Could you also tell me how to calculate a fund's daily/monthly SEC yield including the analysis of changes from the previous day/month.

[@TheFundAccountant]

sure. I will create a separate video on the same. Keep watching.

[@abinterviewsmarathi]

Plz make more videos on fund accounting there are only a few channels uploading this kind of content

[@TheFundAccountant]

I will be uploading videos soon. Thank you. Keep watching.

[@VikasSharma-ih1mj]

How to know number of shares outstanding of a mutual fund

[@TheFundAccountant]

The shares outstanding information will be coming from transfer agency. Keep watching.

[@pravinpednekar2064]

Hi mam...great video want to know 1) what abt divident of security B 2) how can we calculate outstanding share 3) what if any trade happened 4) what does mean by security...is it particular stock or what

[@TheFundAccountant]

Hello. 1. In the example given Security B is not going Ex-D For that day. But the treatment would have been same like security A, the income component would have increased. 2. Outstanding shares or units depends on the capital activity of the fund. It will be net of subscription and redemption for the day. In the example , there was no capital activity for the day, hence no change in outstanding units. 3. I have created a video on Realised & Unrealised gain/loss and It’s impact on NAV, that will help you to clear your doubt. kzbin.info/www/bejne/p4OamaKeh8tqh7s 4. Security means the particular stock in the funds. Multiple stock holding will create the portfolio. Keep watching.

[@nivassuvvarapu8395]

Hi mam, really happy for videos. R u conducting any online classes, could you please let me know.

[@TheFundAccountant]

I am planning to start online course soon. Keep watching.

[@shibindavid5585]

Thanku so much mam

[@TheFundAccountant]

Welcome. Keep watching.

[@reddyprasad9559]

hello madam, Thank you for sharing knowledge. could you please Explain real time process ( day to day operations ). it's much helping

[@TheFundAccountant]

Thanks for your suggestion. I can create a dummy fund with some transactions to explain in details. Keep watching.

[@sangramwavhal4919]

Could please make the video on cash collateral

[@TheFundAccountant]

Sure I will create a video on cash collateral. Keep watching.

[@ramsrikaram]

yes mam we want the video with trade included in it

[@TheFundAccountant]

Sure. I have created video on unrealised/ realised gain loss which cover the trade aspect in the fund. kzbin.info/www/bejne/p4OamaKeh8tqh7s

[@sivakumarreddy6617]

Thank you ma'am Here Total liabilities means expect subscriptions from investors. Is this or any change pls correct me.

[@TheFundAccountant]

In the example what I have taken here only expense will be considered as liability to the fund. Any payable will be considered as liability.

[@sagarmakare8707]

Which book is available for fund accounting

[@TheFundAccountant]

Unfortunately there is no book available for fund accounting yet. You can follow my video on fund accounting concepts. Keep watching,

[@shrawanrai542]

Mam great videos. Mam can you suggest me a book on fund accounting?

[@TheFundAccountant]

Thank you. Unfortunately there is no book available currently on fund accounting. Hope my videos will help you to understand the concepts. Keep watching.

[@autumn_Season03]

Th ank you 👏

[@TheFundAccountant]

Welcome. Keep watching.

[@NM-bs6lm]

Hello Ma'am, I want to understand what are different Distribution Rates other than NAV which are released on exchanges by the FA

[@TheFundAccountant]

Distribution rate and NAV is not same. Distribution rate is based on the distributable income of the fund has on quarter end or year end divided by the Number of unit outstanding. Hope that answer your question.

[@NM-bs6lm]

@@TheFundAccountant And how do we derive the Distributable Income?

[@TheFundAccountant]

​ @user-pl8pm7tn7r we derive at the distributed income based on the accumulated income in a year/ quarter. Also we receive instruction out the total income how much will be distributed.

[@gamezyy8640]

Can you please upload Private Equity NAV Calculation?

[@TheFundAccountant]

Sure. Keep watching.

[@sowmyak2377]

Why is the dividend calculated only for Security A

[@TheFundAccountant]

It is just an example I used to explain the dividend income in the fund.

[@nivassuvvarapu8395]

Hi mam, could you please make a video on Pricing valuation please.

[@TheFundAccountant]

Sure. I can create a video on pricing. Keep watching.

[@poojachandak7147]

Hello ma'am, i got a bit confused. If fund xyz holds only 100 shares of security A and B then how outstanding shares are 1000?

[@TheFundAccountant]

Hi. Thank you for your question. In the example provided in this video, Fund XYZ holds 100 shares of Security A & Security B that will create the portfolio of the fund. The shares Outstanding also can be referred as "Unit outstanding" is the Number of Units of the fund XYZ has been purchased by investor. The 1000 units outstanding is related to unit deals/ subscriptions- redemptions. Hope your doubt is cleared. Keep watching.

[@poojachandak7147]

@@TheFundAccountant thanks for the reply

[@indreshchitral_9_]

Thank you for uploading this video 🙂.

[@TheFundAccountant]

@@indreshchitral_9_ Welcome. Keep watching.

[@nprasadrao8395]

Hi mam can you please make a video nav calculation end to end process.

[@TheFundAccountant]

This video covers the basic work-flow of how to calculate NAV.

[@shaileshparekh578]

Thanks for nice information. Request you to guide on following questions: 1. What if the new investment comes in of another Rs.1 Lakh, what will be new size of unit instead of 10,000. 2. What about net profit. 3. How income tax will be treated on Capital gain

[@TheFundAccountant]

In case there is new Investment, based on the current NAV= total investment/ current NAV will be the number of unit outstanding will be issued to the investor and same will be add to fund's shares outstanding. Net profit will be based on the income and realized gain the fund made in a year. Capital gain tax is not covered in this example.

[@sandyk419]

Hi mam pls make a video on hiw to book accurals

[@TheFundAccountant]

The expense video has covered the accrual part of Expense. I can still cover it on accrual. Keep watching.

[@sarathim5236]

How do you decided 1000 outstanding share madam? It can be anything? Or it should be related to investment? Because as per your explanation outstanding should be 200 only ..so please clarify madam... Thank you madam

[@TheFundAccountant]

1000 Outstanding units- this is the denominator of the NAV. Also this is the example I have taken to explain how to calculate NAV. 200 Shares will be the Security holding of the fund, which will be constituting the numerator of the NAV. Keep watching.

[@nirmal4447]

Hi Mam, if dividend is considered on ex date then my price of the security A also will get adjusted to the dividend right so MV of A will be 8960 and dividend in the account will be 40 right? Correct me if I am wrong . Thanks

[@TheFundAccountant]

I am taking example on 18.06.2022 the dividend and price, the price movement what you are referring will be from prior day to current day. So the price drop will be from 17.06.2022 to 18.06.2022.

[@AmitJain-tr3lw]

@@TheFundAccountant in this video's example the NAV has got affected due to the dividend as the share price is not adjusted

[@adarshv1752]

Hello ma'am, What is that Ex means.. I am not able to get that particular word clearly.

[@TheFundAccountant]

Ex is Ex-dividend date in dividend payment. Please refer to my video on Dividend important dates where you will get more understanding on Ex-date. Keep watching. kzbin.info/www/bejne/fJTGlGd7Zpd9racsi=FQxZxAeCak8gL-E-

[@anjubhandari1083]

What is Adjusted NAV?

[@TheFundAccountant]

Sometime the NAV will be calculated based on swing price.

[@anjubhandari1083]

@@TheFundAccountant Okay. It would be great if you can explain swing price effect on NAV?

[@pavankumar-fe3hd]

When accrual is realised it is not impacting NAV can u explain

[@TheFundAccountant]

Can you explain further your question.

[@pavankumar-fe3hd]

@@TheFundAccountant Like when any accrual eg admin fee payable is realised in cash then NAV is impacted or not.

[@TheFundAccountant]

@@pavankumar-fe3hd No. As you are creating an accrual, hence on payment date you wont have any impact.

[@TheFundAccountant]

@@currentaffairs2055 I agree accrual do impact NAV, but payment won’t impact your NAV.

[@neelapuramprasadrao2940]

Mam can you explain unit & trade breaks

[@TheFundAccountant]

I have created separate videos on Cash and Position reconciliation, that will help you to understand unit and trade break. Please find the links below. Keep watching. kzbin.info/www/bejne/fqawhWufo7qdgNU kzbin.info/www/bejne/f2axpqmjibVge5Y

[@SushovanAta-nn4rn]

Asset--Liabilities = 0. because in balance sheet your asset and liabilities should match. so how come you derive the Net Asset Value of a fund ?

[@TheFundAccountant]

For a Fund in Fund accounting Assets and Liability will not always net off. You will have Total Net assets which will be computed based on Asset-Liability. Hope that answer your question. Keep watching.

[@user-vx5ov2fm6x]

In any industry liability has two parts one is other liability and 2nd one is capital invested by investor so once we calculate net asset is total asset less outside liability equal to NA

[@sridharjayaprakash5970]

Can u me training? I will pay for it.

[@TheFundAccountant]

I have a plan to start a course. I will update in my community post. Keep watching.

[@NeverMind-fq4sr]

Hi where 1000 outstanding shares comes from.. this number created my mutual fund company as per convenience of customer... Rights?

[@TheFundAccountant]

The 1000 outstanding shares are derived by the investor , so there can be one or multiple investor invested money in this mutual fund. The fund has issues units to them, that is the number of share outstanding.

[@jismongeorge3406]

​@@TheFundAccountant I didnot get that..The shares outstanding should be 200,right? shares outstanding are the shares currently held by investors i believe.This is creating confusion for me in this video

[@TheFundAccountant]

@@jismongeorge3406 200 share for security A and security B , that is held by the Fund. What I mentioned about unit outstanding 1000 units that is the unit of the Fund held by investor. We get share outstanding or unit outstanding information from transfer agency. The 200 shares what you are referring is the number of security in the Fund.