What is NAV (Net Asset Value)? — Meaning, Definition & Example
Definition
NAV is the per-unit market value of a mutual fund scheme. It is calculated by dividing the total value of all assets minus liabilities by the number of outstanding units. NAV is updated daily after market hours.
If a mutual fund has assets worth ₹100 crore and 10 crore units outstanding, the NAV is ₹10 per unit.
🇮🇳 NAV (Net Asset Value) in Hindi / हिंदी में
NAV (नेट एसेट वैल्यू) — NAV म्यूचुअल फंड स्कीम की प्रति-यूनिट बाजार मूल्य है। इसकी गणना कुल संपत्ति मूल्य में से देनदारियां घटाकर, बकाया यूनिटों की संख्या से भाग देकर की जाती है।
NAV (Net Asset Value) (Hinglish) — NAV ek mutual fund scheme ki per-unit market value hoti hai. Total assets minus liabilities ko outstanding units se divide karke nikali jaati hai.
The 30-Second Mechanics
NAV = (total value of everything the fund owns − liabilities) ÷ number of units, computed once daily after markets close. Buy ₹10,000 of a fund at NAV ₹50 → you own 200 units; the fund's stocks rise 2% tomorrow → NAV ~₹51, your money ~₹10,200. That's the whole machine — NAV is a unit-price, not a scoreboard.
The Myth That Sells Bad NFOs
"NAV ₹10 is cheaper than NAV ₹500" is the oldest mis-sell in Indian MF history. Two funds with identical portfolios and returns make you identical money regardless of NAV — 12% growth turns ₹10 into ₹11.20 and ₹500 into ₹560; your ₹10,000 grows to ₹11,200 in both. A ₹500 NAV usually just means the fund is OLD (decades of compounding) — if anything, weak evidence in its favour. NFO-at-₹10 marketing exploits exactly this illusion.
Cut-Off Times: Which Day's NAV You Actually Get
| Fund Type | Order + Money Received Before | NAV You Get |
|---|---|---|
| Equity / hybrid funds | 3:00 PM | Same day's NAV |
| Equity / hybrid funds | After 3:00 PM | Next business day |
| Liquid / overnight funds | 1:30 PM (money realised) | PREVIOUS day's NAV (+1 day's accrual) |
Since 2021, the NAV you get depends on when money REACHES the AMC, not when you tap 'buy' — a UPI SIP at 2:55 PM may still miss the cut-off if funds settle late. For lumpsums, transfer early morning.
Direct vs Regular NAV — The Gap That Measures Your Loss
The same fund shows a HIGHER NAV in its direct plan than regular — same portfolio, but the regular plan's NAV grows slower because commissions are deducted inside it daily. The direct-minus-regular NAV gap widening over years is literally your advisor's compounded take, printed on screen (full math in our direct-vs-regular guide).
Three More NAV Behaviours That Confuse People
① IDCW payout days: NAV drops by the payout — the 'dividend' came from your own NAV (see mutual fund guide). ② ETF price ≠ NAV: on-screen ETF prices drift from live iNAV with demand — that spread is a real cost (our ETF guide covers the defence). ③ Big NAV fall without market news: check for a fund split/bonus or IDCW record date before panicking.
Rules verified as of July 2026 (post-Budget-2024/2025 framework, unchanged by Budget 2026). Facts last checked: 14 July 2026 by Priyanka Dhawan.