Net Asset Value (NAV)

The current market worth of a mutual fund’s share. A fund’s net asset value is calculated by taking the fund’s total assets, securities, cash and any accrued earnings, deducting liabilities, and dividing the remainder by the number of units outstanding.

In context with investment, the NAV of an investment scheme is a number which represents the value in rupees per fund unit as on a particular date of the assets of the fund less liability and outstanding


Thus, if the NAV in more than the face value, it means our money has appreciated and vice-versa.

NAV is only the value that a fund’s assets would realise, less liabilities, in case the fund was liquidated as on the particular date to which NAV relates. But there is no uniformity in accounting policies of the various funds and hence one cannot compare one fund with another.