Net Asset Value (NAV) Concept: How we can use it to build our own investment portfolio?

Why I got interested in the concept of Net Asset Value (NAV)? Because it helped me to see my portfolio-building from the eyes of a mutual fund manager.

Generally, I build my savings under several heads (like saving#1, saving#2 etc). Overtime, savings keeps accumulating under each head. When it becomes sufficiently large, I use a part of it and lock them in investments.

So the money that flows into my investment portfolio, is in a staggered way. If the first instalment comes in January, then the next may come in March and so on.

But such staggered in-flow of money into my portfolio gave rise to a unique problem. The problem was, “how to assign the gains/losses to the new influx of money“. I’ll explain it more later. Before that let me tell you how NAV caught my attention.

Why I got interested in the concept of Net Asset Value (NAV)? Because it helped me to see my portfolio-building from the eyes of a mutual fund manager.

Generally, I build my savings under several heads (like saving#1, saving#2 etc). Overtime, savings keeps accumulating under each head. When it becomes sufficiently large, I use a part of it and lock them in investments.

So the money that flows into my investment portfolio, is in a staggered way. If the first instalment comes in January, then the next may come in March and so on.

But such staggered in-flow of money into my portfolio gave rise to a unique problem. The problem was, “how to assign the gains/losses to the new influx of money“. I’ll explain it more later. Before that let me tell you how NAV caught my attention.