Mutual Fund Compare

What is NAV in mutual funds? How it is calculated

Written and reviewed by Omm · Last reviewed · General information, not investment advice

NAV (Net Asset Value) is the price of one unit of a mutual fund. It is the number you see next to a fund’s name and the price at which you buy or sell units.

How NAV is calculated

At the end of each business day the fund house adds up the market value of everything the scheme holds, subtracts its liabilities and accrued expenses, and divides by the number of units in issue:

NAV = (value of assets − liabilities) ÷ units outstanding

Because the fund’s yearly expense ratio is deducted a little each day, a published NAV is already after costs.

A low NAV is not a bargain

A common mistake is to prefer a fund with a NAV of ₹15 over one at ₹300 because it “looks cheaper”. NAV is not a share price in that sense. When you invest an amount, you simply get more units at a low NAV and fewer at a high NAV, and your total value is the same. Two funds that grow by the same percentage give you the same result whatever their NAVs are.

New fund offers usually start at ₹10 per unit. That does not make them cheaper than a fund whose NAV has grown to ₹100 over many years.

The return of a fund is the change in its NAV over a period. If a NAV rises from ₹100 to ₹121 in two years, the fund returned 21% in total, which is about 10% a year. See CAGR vs XIRR vs absolute return for how to express this.

For funds that pay out IDCW, the NAV falls by the amount distributed, so comparing NAVs alone understates what the investor earned. Funds can also change their unit value in a split; this site detects those and adjusts its calculations so that the change is not mistaken for a loss.

Where to find it

The screener and every fund page on this site show the latest NAV and its date, taken from AMFI’s official data.

Frequently asked questions

What does NAV stand for?

NAV stands for Net Asset Value. It is the value of one unit of a mutual fund scheme on a given day.

How is NAV calculated?

NAV = (market value of all the scheme's assets − its liabilities and accrued expenses) ÷ number of units outstanding. It is worked out at the end of every business day.

Is a fund with a low NAV cheaper or better?

No. NAV is just the price of a unit. If you invest ₹10,000, a ₹10 NAV gives you 1,000 units and a ₹100 NAV gives you 100 units. If both funds grow 10%, you have ₹11,000 either way. What matters is the percentage return, not the NAV.

When is the NAV published?

Fund houses report NAVs to AMFI after each business day, and AMFI publishes them, usually the same evening. Some funds, such as overseas funds, may update a day or more later.

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