Скачать или смотреть Want to MASTER Mutual Funds? Learn Net Asset Value First

If you're exploring mutual funds, you've likely come across the term Net Asset Value (NAV). Simply put, NAV is the price of a single unit of a mutual fund. It’s the amount you pay when buying units or the value you receive when redeeming them.

Every mutual fund manages a basket of assets based on its specific goals—these can include stocks, bonds, money market instruments, cash, and even derivatives. At the same time, mutual funds incur liabilities such as management fees, taxes, and administrative costs.

To calculate the NAV, you subtract the fund's liabilities from its total assets and divide the result by the number of units in the fund. For example, if a mutual fund’s assets are worth ₹10 crore, liabilities are ₹40 lakh, and there are 15 lakh units, the NAV would be:
NAV = (₹10 crore - ₹40 lakh) ÷ 15 lakh = ₹64 per unit

This means if you invest ₹10,000 in this fund, you'll receive approximately 156.25 units at an NAV of ₹64.

Unlike stock prices, which fluctuate throughout the trading day, NAV is calculated only once—at the end of each trading day. This is because the prices of the fund’s underlying assets, like stocks, are finalized after the market closes at 3:30 PM.

By around 11 PM, mutual fund houses and Asset Management Companies (AMCs) publish the NAVs on their websites.

The price at which you buy or redeem units is determined by the cut-off time set by SEBI, the market regulator. Here’s how it works:
• For liquid and overnight funds, the cut-off time is 1:30 PM.
• For debt and equity funds, it’s 3:30 PM.

If your investment amount reaches the fund before the cut-off time, you’ll get that day’s NAV. Otherwise, the NAV of the next business day will apply.

We need to note that NAV is just the unit price—it doesn’t indicate how well the mutual fund is performing. For that, you’d need to look at the fund’s historical returns and other metrics.

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