Same Rs 10000. Same holdings.
Same result.
Two funds holding the exact same portfolio. One slices itself at Rs 10 a unit, the other at Rs 500. Put the same money in both.
|
NAV Rs 10 fund |
NAV Rs 500 fund |
| Units you get | 1000 | 20 |
| Holdings rise 10 pct, new NAV | 11.00 | 550.00 |
| What it is actually worth | Rs 11000 | Rs 11000 |
The low NAV did not buy more. It bought more slices of the same pizza. Your Rs 11000 is identical to the rupee. A Rs 10 sticker is not a discount and a Rs 500 sticker is not expensive. The NAV is just today's value of one unit of the same pot.