Does Franklin Templeton Mutual Fund NAV Determine the Fund’s Performance? Many a times investors judge the performance of a Mutual Fund by its NAV. This method of judgement is not entirely wrong but it is not advisable to do so. Franklin fund managers and advisors never recommend to subscribe to fund based on Franklin Templeton Mutual Fund NAV. Net Asset Value is an indicator which shows how many units of the fund you’ll be getting for the money you invest. Say, if you are investing INR 11,000 in Scheme A and Scheme B. NAV for the first scheme is INR 100 and the other is INR 110. In the case of Scheme A, you’ll get 110 units and Scheme B, you’ll get 100 units. There's a difference in the number of units scored by you but the value of your investment remains the same. It also shows that the Franklin Mutual Fund has been around for a long time. Thus, it is wise to say that the NAV is irrelevant when it comes to judging the performance of any mutual fund scheme. What Constitutes Franklin Templeton Mutual Fund NAV? There are three things that precisely constitute the Franklin Mutual Fund NAV - the assets held by the fund, outstanding liabilities and the number of outstanding shares. Total assets owned by the scheme are the market value of securities that the fund has its money invested in. Following up is the liabilities accrued by the fund, which includes expense ratio. Finally, the denominator which is the total number of outstanding shares. How is Franklin Mutual Fund NAV Calculation Done? Calculation of Franklin Templeton Mutual Fund NAV is very simple and easy to do. Infact, you can try it once you’re done reading this article. Franklin calculates the NAV of the scheme by dividing the total net assets of the fund by the total number of outstanding units. To determine the total net assets, Franklin subtracts any liabilities from the fund’s total assets. Let’s break it down into a formula for your understanding. NAV = (Total Assets - Any Liabilities) / Total Number of Outstanding Shares When is Franklin Templeton Mutual Fund NAV Calculated? Market regulator, SEBI (Securities Exchange Board of India), has made it mandatory for every fund house to calculate their NAVs by the end of the day. NAV calculation can’t be done from time to time as the value of underlying stocks keep fluctuating during the day. This is why the NAV calculation for any of the Franklin funds is done at the end of the day. End of the day calculation of NAV helps to take into account the closing prices
of all the stocks that is being held by Franklin Templeton Mutual Fund. Can one Invest in Mutual Funds through Franklin Templeton Mutual Fund SIP ? There are two ways in which you can invest your money in Franklin Mutual Fund Lumpsum and Franklin Templeton Mutual Fund SIP. The call is yours to take. If you have ample savings stalling in your account that doesn’t give you the returns that you desire, invest it through lumpsum to earn higher returns. And if you want to take a monthly approach, take the Franklin Templeton Mutual Fund SIP route, wherein a certain amount of your monthly income (as you wish) will go towards mutual fund investment. You can invest in Franklin mutual fund through Franklin’s website directly or, you can do the same via the website some financial technology companies, wherein you get special advisory services also.