The per-unit market value of a mutual fund scheme, calculated daily at market close.
Net Asset Value (NAV) is the price at which investors buy or sell mutual fund units. It equals the total market value of the fund's assets minus its liabilities, divided by the number of outstanding units.
Think of NAV like the share price of a mutual fund. Just as a stock has a market price, a mutual fund has a NAV. When you invest ₹10,000 at a NAV of ₹50, you receive 200 units of that fund. The next day, if the fund's portfolio grows, the NAV rises — and so does the value of your investment.
Every business day, after market close, the fund house values all securities held in the scheme at closing market prices.
It subtracts liabilities such as management fees, accrued expenses, and payables from the gross asset value.
The net figure is divided by the total number of outstanding units to produce the NAV for that day.
All purchase and redemption transactions placed before the cut-off time (typically 3 PM IST) are processed at that day's NAV.
NAV = (Total Assets − Total Liabilities) ÷ Outstanding UnitsA fund holds ₹100 crore in assets and has ₹2 crore in liabilities. With 2 crore units outstanding: NAV = (₹100 Cr − ₹2 Cr) ÷ 2 Cr units = ₹49 per unit If you invest ₹49,000 at this NAV, you receive 1,000 units. If NAV rises to ₹55 in six months, your investment is now worth ₹55,000.