Difference Between Cost Value, Invested Value and Current Value

Difference Between Amount Invested, Current Value and Net Investment

Updated on 27 Nov, 2024

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What is Amount Invested?

The amount invested refers to the total sum of money that an investor puts into these specific financial instruments. In other words, it is the amount invested is the cumulative cost of the mutual fund investment units you currently hold.

Amount Invested = Units x Purchase NAV

What is Current Value in Mutual Fund?

The current value of an investment in mutual funds can fluctuate based on various factors such as market conditions, the performance of the underlying securities, and the specific mutual fund’s investment strategy.

To determine the current value of your investment in mutual funds, you can check the latest net asset value (NAV) of the fund. The NAV represents the per-unit value of the mutual fund and is calculated by dividing the total value of the fund’s assets by the number of outstanding units/shares.

Current Value = Units x Current NAV

What is Net Investment?

The term net investment in a mutual fund refers to the total amount of money that you put into the fund, taking into account any withdrawals or redemptions made over time. It represents the net sum of all your contributions minus any withdrawals.

What is the difference between amount invested, current value and net investment?

Let’s understand the difference between the amount invested, current value and net investment with an example.

You purchased 10 mutual fund units at a NAV of Rs. 10 each. Your amount invested is Rs. 100.

A year later, the NAV became Rs. 12 each. Your current value at that time is Rs. 120. On that day, you sold all 10 units. So, your net investment is now Rs. 100 – 120 = – Rs. 20 (minus Rs. 20 since you gained Rs. 20)

If, on the other hand, the NAV had fallen to Rs. 8 each, your current value at that time is Rs. 80. On that day, you sold all the 10 units, so your net investment would become Rs. 100 – 80 = Rs. 20 (since you lost Rs. 20)

Scripbox takes care of calculating all these for you.

Frequently Asked Question

What is current value in mutual fund?

The current value in mutual fund refers to the current market price or net asset value (NAV) of the mutual fund units. It represents the value of one unit of the mutual fund at a specific point in time.

What is net investment in mutual fund?

The net investment in mutual funds usually refers to the total amount of money an investor has invested in the fund, excluding any additional gains, losses, or income earned from the fund. It represents the initial amount of money the investor has put into the mutual fund.

What is Purchase/Transaction Price in mutual fund?

The purchase or transaction price in mutual fund is the price at which investors buy mutual fund units. It is usually equal to the NAV plus any applicable charges, such as sales loads (front-end loads) or other transaction fees.

What is redemption price in mutual fund?

The redemption price in mutual fund is is the price at which investors sell mutual fund units. It is also usually based on the NAV, but there may be redemption fees or back-end loads, which can affect the redemption price.