Mutual Fund units represent an investor's ownership in a Mutual Fund scheme. When you invest in a Mutual Fund, you receive units based on the NAV At The Time of Purchase.
For example:
- If you invest ₹5,000 in a Mutual Fund with a NAV of ₹10 per unit, you will receive 500 units (₹5,000 ÷ ₹10).
- If the NAV later increases to ₹12, your investment value becomes ₹6,000 (500 × ₹12).
Mutual Fund units allow investors to track their investment growth and redeem them at prevailing NAV.