Definition of NAV (Net Asset Value)
NAV (Net Asset Value) is the price per unit of a mutual fund scheme. It is calculated at the end of every business day by dividing the total value of the fund's assets (minus liabilities) by the total number of outstanding units.
Formula: NAV = (Total Assets − Liabilities) ÷ Total Number of Units
A higher NAV does not mean a fund is expensive — it simply means the fund has been around longer or has grown more. Buying a fund at NAV ₹200 is not more expensive than buying at NAV ₹20 if the underlying portfolio quality is the same. NAV is important for understanding how many units you will receive when you invest and how much you will get when you redeem. NAV is declared daily by AMFI (Association of Mutual Funds in India) after market close.