What is NAV?
A simple explanation for Indian investors — Wealth Simplified.
Quick Answer
Net Asset Value (NAV) is the per-unit price of a mutual fund scheme, based on the fund's assets minus liabilities, divided by units outstanding.
Simple Explanation
NAV tells you the value of one unit of the fund on a given day.
How It Works
Fund houses calculate NAV using the market value of holdings after expenses and liabilities.
Why It Matters
You buy and redeem mutual fund units at NAV (subject to applicable cut-offs and loads).
Simple Example
If a fund's NAV is ₹50 and you invest ₹5,000, you receive 100 units (before any applicable charges).
Common Misconception
A lower NAV is not automatically 'cheaper' or better — it does not mean higher future returns.
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Plan Your Financial FreedomAdeethya Investments · AMFI-registered Mutual Fund Distributor · ARN-366563. Mutual Fund investments are subject to market risks, read all scheme related documents carefully before investing.