What Is NAV in a Mutual Fund?
Updated 26 Aug 2026
NAV (Net Asset Value) is the per-unit price of a mutual fund scheme. It is the value of everything the fund owns, minus what it owes, divided by the number of units outstanding.
How it is calculated
NAV = (Total market value of holdings + cash − liabilities and expenses) / Number of units. AMCs must declare NAV for each business day, and it is published to four decimal places.
The biggest misconception
A low NAV does not mean a fund is cheap or has more room to grow. If Fund A has an NAV of ₹20 and Fund B ₹200, investing ₹20,000 buys 1,000 units of A or 100 units of B. If both rise 10%, you gain ₹2,000 either way. NAV level is an accounting artefact of when the fund launched, not a valuation signal.
NAV is already net of expenses
The expense ratio is deducted daily before NAV is declared, so every return figure computed from NAV — including all the CAGR on this site — is already after ongoing fund costs. Exit loads and your own taxes are not included.
Frequently asked questions
Is a fund with a lower NAV cheaper or better value?
No. NAV is just the portfolio value divided by the number of units. A fund at ₹15 and a fund at ₹500 can hold identical portfolios — ₹10,000 simply buys you more units of the cheaper-looking one. Only the percentage change in NAV matters, never its absolute level.
Why does my fund's NAV not change intraday?
Mutual fund NAV is computed once at the end of each business day, after markets close and the portfolio is valued. Unlike a stock or an ETF, you always transact at the day's declared NAV rather than a live price.