Net Asset Value

Net Asset Value (NAV) is calculated as the current value of total assets minus the total value of all liabilities, divided by the total number of outstanding units. NAV allows an investor to track the performance of a fund.

An asset management company (AMC), which manages the fund, declares the NAV of its various schemes for all business days.

To explain this further with an example: Let’s say if the market value of securities of a mutual fund is ₹500 lakh and the mutual fund has issued 10 lakh units, then the NAV per unit of the fund is ₹50.