What is NAV (Net Asset Value) in Mutual Funds?

The full form of NAV is NET ASSET VALUE and it means - Actual Value of Net Worth,

Today we are going to talk about NAV in the context of MUTUAL FUND, what is the meaning of Mutual Fund NAV, what is the use of NAV in Mutual Fund, how NAV is calculated, and also know the importance of Mutual Fund NAV.

What is NAV (Net Asset Value) in Mutual Fund?

MUTUAL FUND NAV The total amount of assets, shares, bonds, and CASH in a fund's portfolio divided by the total UNIT of that fund divided by the total amount of liabilities (LIABILITIES) of that fund from the total assets, shares, bonds, and CASH It is called NAV(NET ASSET VALUE) of that fund.

NAV is also known as Book VALUE of Mutual Fund.

And just as the book value of its Mutual Fund changes, similarly its NAV also changes.

The reason for the change in the NAV or book value of the mutual fund is the daily, daily change in the stock market price of the stocks invested by the mutual fund.

And in this way, as soon as the value of the total assets of the mutual fund changes, in the same way the PRICE of the NAV also changes.

Use of Mutual Fund NAV

NAV is the unit value of a mutual fund, the UNIT we get by investing in a mutual fund, the PRICE of a UNIT is determined by its NAV.

And thus to know the current value of the total amount invested by an investor in a mutual fund, the NAV price and the total UNIT of that mutual fund are multiplied (MULTIPLY).

For example, suppose if I have invested 10000 rupees in mutual funds so far.

And in return I have got 100 units, and today the NAV of that mutual fund is Rs 105.

So the CURRENT VALUE of the total mutual fund investments made by me like this will be:

TOTAL VALUE OF MUTUAL FUND = (NAV) x (TOTAL UNIT)

And thus my investment value will be = (105) X (100) = Rs 10,500.

In this way the amount of profit from mutual fund will be 10500 – 10000 = profit of Rs 500

In this way, NAV is the current price of one unit of the mutual fund.

And with the help of this NAV, the value of investment in mutual funds and the return on it are compared.

Difference between “Mutual Fund NAV” and Stock Price

There is a big difference between NAV and Stock price of Mutual Funds that-

STOCK PRICE is the MARKET PRICE of that stock, while the NAV of a mutual fund is the BOOK VALUE of that fund.

Therefore, do not treat the NAV of a mutual fund as a stock price.

And also keep in mind that there is no comparison in the NAV price of two different mutual funds, there is no relation between the two.

Whereas the stock price of two companies working in the same type of industry can be compared, because the stock price always tells the market price.

Another biggest difference between mutual fund NAV and stock price is that –

Stocks are always bought and sold at the market price, irrespective of its book value, whereas the NAV of a mutual fund which is its book value, and the purchase or sale of Units in a mutual fund is always at book value.

How to check NAV online?

Now if we talk about how to check mutual fund NAV online, then you can also check it on the website of mutual fund scheme,

And it can also be checked on some other MONEY and FINANCE related websites,

The main website to check Mutual Fund NAV is –

• AMFI (Association of Mutual Fund in India)
• MoneyControl