What Is Mutual Fund NAV (NAB) and How Is It Calculated?
A mutual fund NAV (Net Asset Value), known in Indonesia as NAB/UP (Nilai Aktiva Bersih per Unit Penyertaan, or Net Asset Value per Participation Unit), is the price of one unit of the fund. It is calculated by taking the fund's total net assets, its Assets Under Management (AUM), and dividing that by the total number of units in circulation. The NAB changes as the value of the fund's investments moves in the market, and the costs borne by the fund are already included in it. It is not a real-time price: on Pluang, the NAB is updated once at the end of each exchange trading day, between 21:00 and 24:00 WIB. Which day's NAB your transaction gets depends on the 13:00 WIB cut-off. Orders completed before 13:00 WIB on a trading day get that day's NAB, and orders after 13:00 WIB get the next trading day's NAB.
- Formula: NAB/UP = total net assets of the fund (AUM) ÷ total number of units in circulation.
- Example: A fund with total net assets of Rp10,000,000,000 and 8,000,000 units in circulation has a NAB/UP of Rp1,250.
- What moves it: The market value of the instruments the fund holds. The NAB can go up or down.
- Fund costs: Costs borne by the fund are already included in the NAB. They are listed in each fund's Prospectus and Fund Fact Sheet.
- Update time: Once per exchange trading day, at the end of the day, between 21:00 and 24:00 WIB.
- Cut-off: 13:00 WIB. Before the cut-off, you get that trading day's NAB. After the cut-off, you get the next trading day's NAB. Transactions on weekends or exchange holidays are processed on the next trading day.
- NAB shown when you transact: The NAB shown in the app when you create a buy or sell transaction is the previous trading day's NAB, used as an estimate. Your final NAB is the one shown after your transaction has been verified.
Related questions:
Q: What is a mutual fund's NAB calculated from?
From the fund's total net assets, its Assets Under Management (AUM), divided by the total number of units in circulation. The NAB moves with the market value of the instruments the fund holds, and the costs borne by the fund are already included in it. For example, a fund with total net assets of Rp10,000,000,000 and 8,000,000 units in circulation has a NAB/UP of Rp1,250.
Q: What is the difference between NAB and participation units?
Participation units (unit penyertaan) are your share of ownership in a mutual fund, while a mutual fund's NAB is the price of one of those units. The units you get from a purchase equal the amount invested divided by the final NAB/UP: Rp1,000,000 invested at a NAB of Rp1,250 gives 800 units. Your holding's value is your units multiplied by the latest NAB.
Q: When is a mutual fund's NAB updated on Pluang?
Once per exchange trading day, at the end of the day, between 21:00 and 24:00 WIB. Unlike stocks, a mutual fund has no live, real-time price during the day. That is why every buy or sell order is priced at a NAB that is only published after the trading day ends.
Q: Which NAB will my mutual fund transaction get?
It depends on the 13:00 WIB cut-off. A transaction completed before 13:00 WIB on an exchange trading day gets that day's NAB. A transaction completed after 13:00 WIB gets the next trading day's NAB. For example, a purchase completed on a Friday after 13:00 WIB gets the NAB of the following Monday, if Monday is a trading day.
Q: Does a higher NAB mean a better mutual fund?
No. The NAB level alone says little about quality, because it depends on the fund's starting price and history. To judge performance, compare the fund's return with a suitable benchmark: bank deposit interest for money market funds, a bond index for fixed income funds, or a stock index such as IHSG, IDX30 or LQ45 for equity funds.