Assets Under Management. Assets under management, the total pool a scheme or fund house manages.

NAV, AUM, mark to market and loads, in plain words

Q: Entry load on mutual funds in India is:

Banned. SEBI banned entry load, so you pay nothing extra to enter. Some funds still charge an exit load.

Q: Mark to market means:

Valuing holdings at today's market price each day. Holdings are revalued daily at market prices, which is what makes a daily NAV possible.

Q: How often is a scheme's NAV normally calculated?

Once each business day. Once each business day. That single daily price is what you buy and sell at.

The words you must know

The terms behind every question

Half of the exam is easy if these four words are automatic. Learn them once here and the later chapters read themselves.

This lesson teaches a concept for the NISM Series V-A exam. It is education, not financial advice.

1
NAV is the price of one unit, worked out once each business day from what the scheme holds.
2
AUM, assets under management, is the total money a scheme or fund house runs.
3
Mark to market means the scheme values its holdings at today's market price, every day.
4
A load is a charge on entry or exit. Entry load is banned in India; some funds still charge an exit load.

Rupee example

If a scheme holds ₹500 crore across all its investors, that ₹500 crore is its AUM. Divide the day's total value by the number of units and you get the NAV.

Practice

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Real exam format. Answer by voice, tap, or press 1 to 4. No negative marking, so always attempt.

Answer by voice

Tap the mic and say A, B, C or D. Typing is optional.

AUM stands for:

Assets under management, the total pool a scheme or fund house manages.

The rest are distractors, not real terms.

Entry load on mutual funds in India is:

SEBI banned entry load, so you pay nothing extra to enter. Some funds still charge an exit load.

Fixed 1% or 2% entry loads are old, pre-ban distractors.

Mark to market means:

Holdings are revalued daily at market prices, which is what makes a daily NAV possible.

It is not advertising, selling, or a yearly-only step.

How often is a scheme's NAV normally calculated?

Once each business day. That single daily price is what you buy and sell at.

Weekly and monthly are distractors.

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NISM V-A syllabus

1What a mutual fund really is

2How a fund is built

3Who watches over it

4The offer document, decoded

5Getting funds to investors

6Selling the right way

8NAV, loads and the daily price

9Types of schemes, and picking one

10Return, risk and performance

11How gains are taxed

12Serving the investor

See the full roadmap →