Key Takeaways
✓NAV = Total Assets / Total Units
✓NAV is updated daily
✓Lower NAV ≠ Cheaper fund (common myth!)
✓Check it free on the AMFI website
What is NAV?
NAV is the price of one unit of a mutual fund — similar to the price of a stock share. If HDFC Bluechip Fund's NAV is ₹85 and you invest ₹5,000, you receive 58.8 units.
How is NAV calculated?
NAV = (Total Value of All Assets − Liabilities) / Total Units Outstanding. Example: A fund holds ₹100 crore in stocks, has ₹2 crore in liabilities, and 10 crore units outstanding. NAV = (100−2) / 10 = ₹9.8 per unit.
Common myth: Low NAV = Cheap fund
Many people think a fund with ₹10 NAV is 'cheaper' than one with ₹200 NAV. This is WRONG. NAV is just a price — not a measure of performance. If both funds invest in the same stocks, you will get the same returns. Never choose a fund based on NAV alone.
When is NAV updated?
NAV is updated after every business day — usually between 9–11 PM. If you invest before 3 PM, you get today's NAV. After 3 PM, you get tomorrow's NAV. You can check the daily NAV on the AMFI website or your investment app.
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