Valuing mutual fund holdings
A net worth statement is only as honest as its valuations, and mutual funds is one of the places households most often get it wrong — usually by carrying the purchase price forward for years. Units held × the current NAV. Count the value, not the amount invested — the gap between the two is the entire return.
- Liquidity grade
- High
- Time to sell
- One to three working days
- Revalue every
- Month
how fast it becomes cash
realistically
or when something material changes
The number to write down
Units held × the current NAV. Count the value, not the amount invested — the gap between the two is the entire return.
What people get wrong
ELSS units are locked for three years from each instalment, so a running SIP always has some units still locked. Market risk that varies enormously by category — a liquid fund and a small-cap fund are not the same asset.
Keep the history, not just the latest figure
A single current value tells you where you stand. A series of valuations tells you whether the asset is doing anything for you. Record the value each time you check it, with the date, and the trend answers questions a snapshot cannot — like whether this holding has actually beaten inflation since you bought it.
Where FamTally comes in
FamTally stores mutual fund holdings with a purchase value, a valuation history and a liquidity grade, so your net worth reflects today rather than the day you bought. Add a new valuation whenever you get a fresh figure and the trend builds itself. Free to use.
Stop doing this in a spreadsheet
FamTally keeps your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and answers questions about your own numbers. Free, and built for Indian families.
Start freeQuestions people ask
How do I value mutual funds?
Units held × the current NAV. Count the value, not the amount invested — the gap between the two is the entire return.
How often should I update the value?
Monthly is plenty, and it takes seconds once the holding is recorded.
Should I use the purchase price instead?
No. The purchase price answers a question about the past. A net worth statement is about what you could realise today.