What is NAV?
NAV stands for Net Asset Value. It is the per-unit market value of a mutual fund scheme, calculated at the end of every business day after market close. The formula is simple:
NAV = (Total Assets – Total Liabilities) / Number of Outstanding Units
How NAV Changes Daily
The NAV of an equity mutual fund changes every market day based on the closing prices of the stocks in its portfolio. A fund holding Reliance, TCS, and Infosys will see its NAV rise when these stocks go up and fall when they decline.
Common NAV Myths Debunked
Myth 1: Lower NAV = Cheaper Fund
A fund with NAV ₹15 is NOT cheaper than one with NAV ₹150. What matters is the fund's performance and portfolio quality, not the NAV level. Both funds will give you the same return percentage if they hold identical portfolios.
Myth 2: High NAV Means Fund is Overpriced
High NAV simply means the fund has been around longer or has grown more. A NAV of ₹500 after 10 years means the fund has generated 400% returns from its original ₹100 NAV — that's excellent, not a reason to avoid it.
NAV and Expense Ratio
The fund's expense ratio is already factored into the NAV. A fund with 1.5% expense ratio will have its NAV net of these fees. Lower expense ratios directly translate to higher NAV growth over time.
How to Use NAV Smartly
- Track NAV history on QuantLogiq to assess fund consistency
- Compare NAV CAGR across fund categories
- Use NAV data to calculate your investment returns accurately