NAV (Net Asset Value) — What NAV Means, NAV Formula & How to Calculate NAV
💡 In plain English: The price per unit of a mutual fund — calculated daily after market close.
Definition
The per-unit value of a mutual fund, calculated by dividing total fund assets minus liabilities by the total number of units outstanding.
📌 Real-World Example
Fund has assets of ₹1,000Cr and 10Cr units outstanding. NAV = ₹100. You invest ₹10,000 → you get 100 units. If NAV rises to ₹120, your investment is worth ₹12,000.
🔢 Formula
❓ Frequently Asked Questions
What does NAV mean in a mutual fund?
NAV stands for Net Asset Value. It is the per-unit price of a mutual fund at which you buy or sell fund shares. It is calculated each trading day after market close using the formula: (Total Assets − Liabilities) / Total Units Outstanding.
How is NAV calculated?
NAV = (Total Assets of the fund − Total Liabilities) ÷ Number of Units Outstanding. For example, if a fund has ₹1,000 Cr in assets, ₹5 Cr in liabilities, and 10 Cr units, the NAV is ₹99.50 per unit.
Does a lower NAV mean a cheaper or better fund?
No. A lower NAV does not mean a fund is cheaper or better value. A fund with NAV ₹10 and one with NAV ₹200 give identical returns if they grow at the same rate. What matters is the fund's performance and expense ratio, not the absolute NAV number.
What is a good NAV for a mutual fund?
There is no such thing as a 'good' NAV — NAV by itself tells you nothing about quality or future returns. A high NAV simply means the fund has been running longer and has grown. Always evaluate a fund's performance history, category, and fund manager track record instead.
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⚠️ Educational Content: All definitions and examples on this page are for educational and consultancy reference purposes only. They do not constitute financial, legal, or investment advice. Moneykar is not registered with SEBI, CBUAE, SCA, or any financial regulator. Consult a qualified professional before making financial decisions.