Net Asset Value
The per-unit value of a fund, computed as its assets less liabilities divided by units outstanding.
Formula
NAV = (Market Value of Assets - Liabilities) / Number of Units Outstanding
Unit
₹
In depth
NAV is an accounting output, not a price: it is computed once a day after the market closes, so buying at a low NAV confers no advantage whatsoever. This is the single most persistent misconception in Indian mutual fund investing — a new fund at ₹10 is not cheaper than an established one at ₹340, since both buy the same rupee value of the same kind of securities. What matters is the return the NAV produces, which is entirely independent of its level. Applications are processed at the NAV of the day the money actually reaches the fund, which is why cut-off times matter.
Worked example
₹1,00,000 into a fund at a NAV of ₹10 buys 10,000 units; the same money into a fund at ₹340 buys 294.1 units. If both rise 15%, both holdings become ₹1,15,000. The unit count changed nothing.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Net Asset Value” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.