According to the regulations, the mutual fund’s investment values are calculated daily in accordance with the period/market date. The Net Asset Value (NAV) is the total investment value in each mutual fund product.

The NAV of a mutual fund is the total of funds managed by an investment manager in a mutual fund product. The NAV is computed from a total market price on assets (such as stocks, bonds and fixed deposits) in a mutual fund’s portfolio including accruals from bonds or fixed deposits in the portfolio, then deducted by the mutual fund’s operational expenses and fees such as management fees, custodian fees, etc and also any relevant taxes. NAV is a net value and is not subject to tax.

There is also the Net Asset Value per Unit (NAV/Unit). While the NAV is the total managed funds of a Mutual Fund, the NAV/Unit is the price/value of a unit of Mutual Fund calculated by dividing the NAV with total subscription units owned by all investors in the Mutual Fund. When purchasing a Mutual Fund product, an investor will be called a participation unit holder. The number of units s/he owns depends on the NAV/Unit of the mutual fund and his/her investment amount. Similarly to the NAV, the NAV/Unit fluctuates daily depending on the market prices of the investment instruments in the portfolio.

For example, if you have Rp5,000,000 to be invested in Mutual Fund A with NAV/Unit at Rp 3,000, you will have a subscription unit as follows:

Rp5.000.000 / Rp3.000 = 1,666.67 unit

After a certain period, you can redeem your participation units or switch them with another Mutual Fund product. For instance, if you want to redeem your participation units after a year with an NAV/Unit at Rp4,500, you can calculate your gains as follows:

Rp4,500 x 1,666,67 unit = Rp7,500,015

Profit —> Rp7,500,015 – Rp5,000,000 = Rp2,500