Comments on: For mutual funds, what is face value and how do you calculate it? http://www.nanothailand.org/mutual-funds/for-mutual-funds-what-is-face-value-and-how-do-you-calculate-it Tue, 08 Feb 2011 18:15:54 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: AKSHAY H http://www.nanothailand.org/mutual-funds/for-mutual-funds-what-is-face-value-and-how-do-you-calculate-it/comment-page-1#comment-6106 AKSHAY H Fri, 12 Mar 2010 03:02:59 +0000 http://www.nanothailand.org/mutual-funds/for-mutual-funds-what-is-face-value-and-how-do-you-calculate-it#comment-6106 The face value of the mutual fund is the amount paid by you if u hav brought mutual fund through subscription. The NAV is the latest price of the mutual fund. In almost all the cases the face value is Rs.10 When mutual funds declare dividend they state 20%. this 20% means 20% of Face value Rs.10 i.e. Re.2 per unit of mutual fund. If you buy the mutual fund after subsription u have to pay NAV as on that date. remember NAV and face value are two different things.<br><b>References : </b><br> The face value of the mutual fund is the amount paid by you if u hav brought mutual fund through subscription.
The NAV is the latest price of the mutual fund.
In almost all the cases the face value is Rs.10
When mutual funds declare dividend they state 20%. this 20% means 20% of Face value Rs.10 i.e. Re.2 per unit of mutual fund.
If you buy the mutual fund after subsription u have to pay NAV as on that date.
remember NAV and face value are two different things.
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]]> By: efflandt http://www.nanothailand.org/mutual-funds/for-mutual-funds-what-is-face-value-and-how-do-you-calculate-it/comment-page-1#comment-6105 efflandt Fri, 12 Mar 2010 02:39:59 +0000 http://www.nanothailand.org/mutual-funds/for-mutual-funds-what-is-face-value-and-how-do-you-calculate-it#comment-6105 The NAV (net asset value) is calculated after the market close each day based on the value of assets in the fund. But you do not really know how much they will distribute in dividends or capital gains until they tell you. Even if you could get a complete listing of everything the fund owns, that could change from day to day.<br><b>References : </b><br> The NAV (net asset value) is calculated after the market close each day based on the value of assets in the fund. But you do not really know how much they will distribute in dividends or capital gains until they tell you. Even if you could get a complete listing of everything the fund owns, that could change from day to day.
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]]> By: HopeURSatisfiedW/MyAnswers http://www.nanothailand.org/mutual-funds/for-mutual-funds-what-is-face-value-and-how-do-you-calculate-it/comment-page-1#comment-6104 HopeURSatisfiedW/MyAnswers Fri, 12 Mar 2010 01:54:59 +0000 http://www.nanothailand.org/mutual-funds/for-mutual-funds-what-is-face-value-and-how-do-you-calculate-it#comment-6104 The face value is the most recent price it's going for, which you can usually check at the fund's website. Mutual funds are not stocks in that funds are priced based on the total of the last trading prices of each of its holdings times the number of shares of each holding, plus cash on hand, plus whatever holding it has. The mix of holdings is usually a trade secret, and funds usually tell you only the top 5 or 10 holdings it carries. For dividend-paying funds, they just allocate and distribute a certain amount per share every period or every few months that is equal or less than whatever dividends their holdings have received so far, which is then removed from the face value. For non-distributing funds, the dividends are imputed into the share price and you have to sell a few if you want to cash in.<br><b>References : </b><br> The face value is the most recent price it’s going for, which you can usually check at the fund’s website. Mutual funds are not stocks in that funds are priced based on the total of the last trading prices of each of its holdings times the number of shares of each holding, plus cash on hand, plus whatever holding it has. The mix of holdings is usually a trade secret, and funds usually tell you only the top 5 or 10 holdings it carries.

For dividend-paying funds, they just allocate and distribute a certain amount per share every period or every few months that is equal or less than whatever dividends their holdings have received so far, which is then removed from the face value. For non-distributing funds, the dividends are imputed into the share price and you have to sell a few if you want to cash in.
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