NAV Full Form: Net Asset Value
NAV full form is Net Asset Value — the per-unit price of a mutual fund, calculated as (total assets − liabilities) ÷ total units outstanding.
What is NAV?
Net Asset Value (NAV) is the price of one unit of a mutual fund scheme. It equals the fund's total assets minus its liabilities, divided by the number of outstanding units. NAV is published once at the end of each business day.
Why NAV matters
Your mutual fund units are allotted and redeemed at NAV. A common misconception is that a low NAV fund is 'cheaper' or better — it isn't; returns depend on the percentage growth of the NAV, not its absolute value.
Example
If you invest ₹10,000 in a fund with an NAV of ₹250, you get 40 units. If the NAV rises to ₹300, your investment is worth ₹12,000 — a 20% gain, regardless of the starting NAV.
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Frequently asked questions
What is NAV full form?
NAV stands for Net Asset Value — the per-unit market value of a mutual fund scheme, calculated daily.
Does a lower NAV mean a cheaper, better fund?
No. NAV level is irrelevant to returns. A fund with NAV ₹15 and one with NAV ₹500 can deliver identical percentage returns. Focus on the fund's strategy, costs and track record, not the NAV number.
At what NAV will I get units?
For most funds, if your money reaches the AMC before the 3 PM cut-off on a business day, you get that day's NAV; otherwise the next business day's NAV applies.