NAV (Net Asset Value) — Mutual Fund Term Explained

The price of one unit of a mutual fund, calculated daily from portfolio value minus liabilities divided by units outstanding.

Net Asset Value (NAV) is the per-unit market value of a mutual fund scheme. Calculated at the end of each trading day by dividing total portfolio value minus liabilities by outstanding units.

NAV changes every day with market movements. When you buy, you get units at the applicable NAV (computed after market close). When you redeem, you receive the redemption NAV minus any exit load.

Formula

NAV = (Total Assets − Liabilities) ÷ Number of Outstanding Units

Example

Portfolio worth ₹100 crore, ₹1 crore liabilities, 10 crore units outstanding → NAV = ₹9.90 per unit.

Related terms

• AUM (Assets Under Management) — The total market value of all assets managed by a mutual fund scheme or AMC. A key indicator of fund scale.
• Exit Load — A fee charged when you redeem mutual fund units before a specified holding period. Usually 1% if redeemed within 1 year. Nil after the lock-in.
• Expense Ratio — The annual fee charged by a mutual fund as a % of AUM. Covers management fees, operational costs and commissions. Deducted daily from NAV.
• Redemption — Selling mutual fund units back to the fund house. Proceeds credited to your bank in T+1 to T+3 business days.

Browse the full mutual fund glossary, or see this concept in action in the fund screener.