Mutual Fund NAV and Units Calculator
Mutual Fund NAV and Units Calculator
How many units an investment buys at a fund’s NAV once stamp duty is deducted, and what those units pay out when you redeem, after any exit load.
Units allotted
$1,00,000 invested at a NAV of 50, no transaction charge; all units redeemed later at 60 with a 1% exit load
From rupees to units and back
- A, C
- the amount you invest and any transaction charge
- s
- the stamp duty rate in %, 0.005 in India
- NAV
- net asset value per unit on the day that applies to the transaction
Worked example
$1,00,000 invested at a NAV of 50, no transaction charge; all units redeemed later at 60 with a 1% exit load
Stamp duty = 1,00,000 × 0.005 ÷ 100.005 = $5.00
Units = 99,995.00 ÷ 50 = 1,999.900
Redemption value = 1,999.900 × 60 = $1,19,994.00
Exit load 1% = $1,199.94; you receive $1,18,794.06
Gain on the $1,00,000 paid: $18,794.06, 18.79%
Units bought by 1,00,000 at different NAVs, after 0.005% stamp duty
| NAV | Units | Stamp duty |
|---|---|---|
| 10.00 | 9,999.500 | $5.00 |
| 25.00 | 3,999.800 | $5.00 |
| 50.00 | 1,999.900 | $5.00 |
| 100.00 | 999.950 | $5.00 |
| 500.00 | 199.990 | $5.00 |
How NAV, stamp duty and cut-off times work
A mutual fund’s net asset value (NAV) is the value of its holdings, less its liabilities, divided by the units in issue, worked out at the end of each business day. When you invest, your money buys units at the NAV that applies to your purchase; when you redeem, units are bought back at the NAV that applies then. A low NAV does not make a fund cheap. The same amount buys more units of a low-NAV fund, but each unit is worth less, and what you gain depends only on how much the NAV rises in percentage terms.
What is deducted. Since 1 July 2020 a stamp duty of 0.005% applies to purchases of units in India, including SIP instalments, switch-ins and reinvested IDCW, under the Indian Stamp Act as amended by the Finance Act, 2019. Registrars work it out on an inclusive basis, amount ÷ 100.005 × 0.005, so the duty is 0.005% of what actually buys units: about $5 on $1,00,000. It is not charged on redemptions. There is no entry load: SEBI banned it for all schemes from 1 August 2009, and extended that to older SIPs in 2019. A distributor may deduct a transaction charge on some purchases, which your statement shows. On the way out, an exit load may apply if you redeem within the scheme’s load period; the mutual fund exit load calculator covers it in detail.
Which day’s NAV. Since 1 February 2021, under SEBI’s circulars of September and December 2020, a purchase gets the NAV of the day on which the money reaches the scheme’s bank account before the cut-off time, 3:00 p.m. for most schemes, whatever the amount; liquid and overnight funds already worked this way, with their own cut-off. Money that arrives after the cut-off gets the next business day’s NAV. So the date you pay is not always the date whose NAV you get.
Running costs are not deducted from your units; they are already taken out of the NAV every day, which the expense ratio calculator shows over time. To measure the return on your units, use the CAGR calculator. This is arithmetic on the figures you enter, not financial advice.
Frequently asked questions
How are mutual fund units calculated?
Units = (amount − any transaction charge − stamp duty) ÷ NAV. $1,00,000 at a NAV of 50 buys 1,999.900 units after $5.00 of stamp duty.
What is the stamp duty on mutual fund purchases?
0.005% in India since 1 July 2020, on purchases, SIP instalments, switch-ins and reinvested IDCW. It is not charged on redemptions. Transfers of units between demat accounts attract 0.015%.
Is there an entry load on mutual funds?
No. SEBI abolished entry loads for all mutual fund schemes from 1 August 2009, and for SIPs registered before that date from 15 April 2019.
Which NAV applies to my purchase?
The NAV of the day your money is realised in the scheme’s bank account before the cut-off, 3:00 p.m. for most schemes. If it arrives later, the next business day’s NAV applies. This has applied to all purchases since 1 February 2021.
Is a fund with a lower NAV cheaper?
No. You get more units, but each is worth less. Your return depends on the percentage change in NAV, not its level.
Related calculators
References
- Indian Stamp Act, 1899, as amended by Part I of Chapter IV of the Finance Act, 2019, with rules and notifications of 30 March 2020 (S.O. 1226(E), G.S.R. 226(E)): stamp duty of 0.005% on issue of mutual fund units and 0.015% on transfer, from 1 July 2020. Method as published in HDFC Mutual Fund, “FAQs on Stamp Duty” (July 2020): duty = (investment − transaction charge) ÷ 100.005 × 0.005; units for the balance; not levied on redemption.
- SEBI circular SEBI/IMD/CIR No. 4/168230/09, 30 June 2009: no entry load for mutual fund schemes from 1 August 2009. SEBI circular SEBI/HO/IMD/DF2/CIR/P/2019/42, 25 March 2019, para E: extended to SIPs registered before 1 August 2009, from 15 April 2019.
- SEBI circulars SEBI/HO/IMD/DF2/CIR/P/2020/175 (17 September 2020) and SEBI/HO/IMD/DF2/CIR/P/2020/253 (31 December 2020), effective 1 February 2021: NAV for purchases subject to realisation of funds before the cut-off, irrespective of amount. Association of Mutual Funds in India, “Cut off timings & new rule on applicable NAV”, amfiindia.com.
- SEBI / AMFI mandatory risk statement: “Mutual fund investments are subject to market risks, read all scheme related documents carefully.”