What is nav in a mutual fund?

Net Asset Value

The total market value at the close of each market day
dividied by
# of shares outstanding

nav is Net Assest Value. Say you purchased units at Rs. 10 face value. According to market condition the value of the unit may go up or down. If after some time the value of these units become Rs. 15 then the NAV is 15. i.e isf you sell the units you will get Rs. 15 for each unit.

net asset value is the total value of the fund's portfolio less liabilities. The NAV is usually calculated on a daily basis.

net asset value

Net Asset Value is NAV

The net asset value (NAV) of a mutual fund is simply its assets minus its liabilities. In other words, NAV equals the fund's worth. If a fund has assets of $50 million and liabilities of $10 million, it would have a NAV of $40 million.

This number is important to investors, because it is from NAV that the price per unit of a fund is calculated. By dividing the NAV of a fund by the number of outstanding units, you are left with the price per unit. In our example, if the fund had 4,000,000 shares outstanding, the price-per-share value would be $40 million divided by 4,000,000, which equals $10.

The NAVs of funds are constantly changing and, as such, so are their price per shares. Funds usually wait until the end of each trading day to recalculate their NAV and individual share prices.

We should note that simply analyzing the NAV is not a good measure of the fund's growth. Funds are constantly paying out distributions of both capital gains and dividends, which reduce the NAV of the fund and do not reflect any appreciation in the price per unit. Say a fund's price per unit increased from $10 to $15, but the fund also distributed $5 per share to all unit holders. The fund hasn't simply appreciated by 50% ($10*1.5 = $15), as the per-unit cost would suggest; it has actually appreciated 100% ($10*2 = $20). So do not mistake a fund's per-share price based on NAV for the actual earnings of the fund.

NAV MEANS NAVIGATION ASSET VALUER

Net Asset Value(NAV) is the actual value of one unit of a given scheme on any given business day. The NAV reflects the liquidation value of the fund's investment on that particular day after accounting all expenses. It is calculated by deducting all liabilities (except unit capital) of the fund from the realisable value of all assets and dividing it by number of units outstanding.

NAV is the net asset value of your units purchased by you.The market price of units varies just like share price.The price of units at a particular time is your nav . It may go up and down from the rate at which you have purchased it.accordingly giving you profit or loss.Nav is decided by the co on the basis of average investments made by it thr mutual fund route.