What is NAV in Mutual Fund?

NAV (Net Asset Value) is the “per-unit” value of a mutual fund scheme. It represents the “net value” of the scheme’s assets, arrived at after deducting its liabilities. This net value is then divided by the number of outstanding units.

How is NAV Calculated in a Mutual Fund in India?

Mathematically, NAV can be calculated using the following formula:

• NAV=Total Assets – Total LiabilitiesTotal Outstanding Units

For example, suppose a mutual fund has assets worth ₹100 crore, liabilities of ₹5 crore, and 9.5 crore outstanding units. Now, its NAV would be:

• NAV=₹100 crore – ₹5 crore₹9.5 crore units=₹10 per unit

Realise that the NAV changes as the market value of the securities held by the scheme changes.

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