Net Asset Value (NAV)

Net Asset Value (NAV) is the per-unit market price of a mutual fund scheme. It represents the value of all securities owned by the mutual fund minus its liabilities, divided by the total number of outstanding units.

Formula

$$\text{NAV} = \frac{\text{Total Market Value of Portfolio Assets} - \text{Total Liabilities}}{\text{Total Number of Units Outstanding}}$$

Key Facts About NAV

• NAV is recalculated and published daily by Asset Management Companies (AMCs) at the end of market trading hours (typically 3:00 PM cutoff).
• A lower NAV does not mean a mutual fund is “cheaper” or better than a fund with a higher NAV; performance depends entirely on portfolio growth percentage.