Net Asset Value (NAV)
The per-unit value of a mutual fund, calculated as the total value of its holdings minus expenses, divided by the number of units outstanding.
When you invest in a mutual fund, you buy units, and the NAV is the price of one unit. It is published at the end of each trading day after the value of the fund's holdings is tallied up.
A higher NAV does not mean a fund is 'expensive' or better — it simply reflects the fund's per-unit value at a point in time. What matters for your returns is how much the NAV grows, not its absolute level.
Key points
- NAV is updated once per trading day, after markets close.
- A high or low NAV says nothing about whether a fund is good value.
- Your gain or loss comes from the change in NAV over time.
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Related terms
The annual fee a mutual fund charges to manage your money, expressed as a percentage of your investment.
Systematic Investment Plan (SIP)A way of investing a fixed amount in a mutual fund at regular intervals — usually monthly — instead of all at once.
Index FundA mutual fund that simply tracks a market index, such as the Nifty 50, rather than trying to beat it.
Exchange-Traded Fund (ETF)A fund that holds a basket of securities, usually tracking an index, whose units trade on a stock exchange like a share.