NAV (Net Asset Value)
Price per unit of a mutual fund.
What does it mean? (Simple)
NAV is the price of one unit of a mutual fund. It's calculated by dividing the total value of all the fund's investments by the number of units.
When you invest ₹10,000 in a mutual fund with NAV of ₹100, you get 100 units. If NAV rises to ₹120, your investment is now worth ₹12,000.
NAV is updated daily after market close. Don't confuse a "low NAV" with being cheap; what matters is how much NAV grows over time.
Example with ₹ numbers
A fund has ₹1,000 crore in assets and 10 crore units. NAV = ₹1,000 cr ÷ 10 cr units = ₹100 per unit.
Common mistakes to avoid
- ⚠️Thinking low NAV means the fund is cheaper or better
- ⚠️Comparing NAVs of different funds (meaningless)
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⚠️ Educational only: This explanation is for learning purposes. Please consult a financial advisor for personalized advice.