NAV meaning
NAV stands for Net Asset Value. It represents the per-unit value of a mutual fund scheme after accounting for the market value of its holdings and expenses.
What is NAV?
NAV is the per-unit value of a mutual fund. Here is how to understand it without common beginner confusion.
How NAV affects your value
Your investment value is approximately units owned multiplied by latest NAV. If you own 200 units and the NAV is ₹50, the value is about ₹10,000.
Lower NAV is not automatically better
A lower NAV does not mean a fund is cheaper or has more upside. Mutual funds are better compared using percentage returns, risk, consistency, category, expense ratio, and suitability.
NAV and SIP units
In SIP investing, each monthly instalment buys units at that date’s NAV. A falling NAV can buy more units, but the investment value can also fall.
What to compare instead
Compare funds within the same category using long-term returns, volatility, drawdown, rolling behavior where available, expense ratio, fund mandate, and risk level.
Educational disclaimer
This guide is for education only. It is not investment advice, tax advice, legal advice, or a recommendation to buy, sell, or hold any mutual fund. Mutual fund investments are subject to market risks. Historical returns do not guarantee future performance.