Does Timing The Net Asset Value Matter?

The performance of a particular scheme of a mutual fund is denoted by its net asset value (NAV). It is also known as the market value of the securities held by the scheme and varies on a day-to-day basis. The NAV of a scheme is based on the market value of the underlying portfolio and thus highly correlated with the market prices. Therefore, in order to clock in that particular day’s NAV, the fund manager needs to be aware of the amount under his management in order to make buying or selling calls in those schemes in accordance with the settlement period and trading times of the markets.