InvestmentFinancial Glossary
NAV (Net Asset Value)
Definition
The per-unit price of a mutual fund scheme, calculated daily as (Total Assets - Total Liabilities) / Number of Outstanding Units. When you invest Rs 10,000 in a fund with NAV of Rs 50, you receive 200 units.
Why It Matters
NAV is not a measure of how 'cheap' or 'expensive' a fund is. A fund with NAV of Rs 500 is not more expensive than one with NAV of Rs 50 — what matters is the percentage return. Do not fall for the common misconception that lower NAV funds offer better value.