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Home | Investor Education Articles | Demystifying NAV
What is Net Asset Value (NAV)?
Mutual funds have been compared with riding a public transport vehicle. Going by the comparison, the ticket price of the journey then becomes the NAV or Net Asset Value of the mutual fund – a key measure of the value of the fund. All transactions of the investor related to purchase and sale of units take place with respect to the NAV


Here are five things you must know about it


The NAV refers to the value of the fund at a particular date. This is nothing but what the investors would get if the fund sold all its assets and distributed the amount among its investors. This shows the true and actual worth of each unit of the fund.

Assets and liabilities

Number of units

Daily calculation


The NAV refers to the per unit value of a mutual fund scheme on a particular date. This is calculated daily by taking the total value of all holdings, reducing the liabilities from this, and then dividing the figure by the number of units.