NAV

Definition: Net asset value(NAV) is the value of a fund's asset less the value of its liabilities

per unit.

NAV = (Value of Assets-Value of Liabilities)/number of units outstanding

Description: NAV is often associated with mutual funds, and helps an investor determine if

the fund is overvalued or undervalued. When we talk of open-end funds, NAV is crucial.

NAV gives the fund's value that an investor will be entitled to at the time of withdrawal of

investment. In case of a close-end fund, which is a mutual fund with fixed number of units,

price per unit is determined by market and is either below or above the NAV.

Technology

Indian companies are moving in search of low-cost markets,technology is driving growth in

production and competition is becoming more intense. The outburst in communication

technology has led to greaterintegration of Indian financial markets across the world. The

outburst of technology has made it possible for theforeign companies to look for Indian

market and returnsassociated with it. All the legal framework and associated work has

become easy to handle

Socio-cultural analysis

The most important factor shaping in today's globaleconomy is the process of globalization.

The increasing share of India and other emerging marketeconomies in world trade. To fund
future needs, To meet contingencies, To maintainsame standard of living after retirement .

Standard of living of population tends to improve.

Political

In India, SEBI (Mutual Fund) Regulations, 1996 regulates the structure of mutual funds.

Mutual funds in India are constituted in the form of a Public Trust createdunder The Indian

Trusts Act, 1882. The stability of the government and people faith into it acts as an

importantreturn factor. The impact of foreign investment. Forced renegotiation of contracts

A requirement that a minimum percentage of supervisory positions be held bylocals

Economic

India's population is young, with 54% under the age of 25and 80% under 45 and the

percentage of workingpopulation is rising rapidly. If we see the position of BSE Senex as

compared to othermajor indexes in the world then we find that BSE has beenthe best

performer. India Potential 'Services Capital' of the World-Withservices becoming

increasingly tradable, India is wellplaced in terms of costs and skill sets and over the past

13 years. Inflation affects the Return-Inflation has always loweredthe actual return from bank

savings except the year 2002 Impact of Various Changes-With the increase in globaltrade and

finance, there is a need for level playing field asthe WTO has laid down common rules to

facilitate smoothtrade among member countries irrespective of their size.