How NAV Works

Think of NAV like a pizza slice

If a whole pizza (fund) is worth ₹100 and it's cut into 10 slices (units), each slice costs ₹10. That's the NAV. A bigger pizza cut into more slices can still have the same slice price.

NAV (Net Asset Value) is the price of one unit of a mutual fund. It's calculated at the end of every business day.

If a fund holds stocks worth ₹100 crore and has 10 crore units, each unit's NAV = ₹10.

The #1 Beginner Mistake: "Low NAV = Better Deal"

A fund with NAV ₹15 is NOT cheaper than one with NAV ₹500. NAV level is completely irrelevant — what matters is the percentage growth. This confuses more beginners than any other concept.

Same Return, Different NAV

You invest ₹10,000 in two funds. Fund A has NAV ₹10 (you get 1,000 units). Fund B has NAV ₹500 (you get 20 units). Both grow 20% in a year: Fund A = ₹12,000. Fund B = ₹12,000. Same profit: ₹2,000 each.

When NAV is Updated

NAV is calculated once per day after market close (3:30 PM IST)
Published by 8:00 PM IST on the AMFI website
On holidays/weekends, the last working day's NAV applies
For purchases before the cut-off time (usually 3:00 PM), you get that day's NAV

Key Takeaway

The NAV already accounts for the fund's expense ratio. If a fund earns 12% gross return but has a 1.5% expense ratio, the NAV growth reflects ~10.5% net return. Never judge a fund by its NAV level — judge it by its return percentage.