Mutual FundsBeginner
NAV
Net Asset Value
The per-unit price of a mutual fund, published at the end of each trading day.
Detailed explanation
NAV is the fund's total assets minus its liabilities and expenses, divided by units outstanding. Unlike a share price it is not set by demand for the fund — it simply mirrors the market value of the underlying holdings.
Formula
NAV = (Total assets − Total liabilities) / Units outstanding
Example
A fund holds ₹500 crore of securities, owes ₹2 crore, and has 4 crore units. NAV = (500 − 2) / 4 = ₹124.50 per unit.
Why it matters
A low NAV is not 'cheap' and a high NAV is not 'expensive' — only the percentage change matters. This single misunderstanding drives a lot of poor fund selection.
Key points
- Declared once daily for most schemes, after market close.
- Applicable NAV depends on the cut-off time your money is realised.
- Returns come from NAV growth, not from the NAV level.
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Educational content only. Definitions and examples are illustrative and are not investment, tax or legal advice.