Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Net Asset Value is the per-unit market value of a mutual fund, calculated as total assets minus liabilities divided by outstanding units.
NAV is the price of one unit of a mutual fund. When you invest ₹5,000 and NAV is ₹50, you receive 100 units.
NAV is computed daily after market close for equity and hybrid funds, using marked-to-market holdings minus expenses and liabilities. Debt fund NAV reflects bond prices and accruals. NAV change reflects portfolio performance, not demand like stock prices.
A fund's total assets are ₹500 crore, liabilities ₹2 crore, and 10 crore units outstanding. NAV = (500 − 2) ÷ 10 = ₹49.80 per unit.
NAV = (Total Assets − Total Liabilities) ÷ Total Units OutstandingLower NAV does not mean cheaper or better. A ₹10 NAV fund is not inherently superior to a ₹500 NAV fund — returns depend on portfolio performance, not NAV level.
In dividend payout options, the NAV drops by roughly the dividend amount because cash leaves the fund. Total value to you includes both NAV and cash received.
Equity fund NAV is typically declared on business days after markets close. On holidays, the last declared NAV usually carries forward.