Net Asset Value (NAV) Of Mutual Fund

 

 
NAV of a Mutual Fund is based on the net assets, liabilities and units of the fund available. it can be said in simple term as the price at which you buy one unit of a Mutual Fund.
Some people confuse it with share price of companies. While the share price of a company may change throughout the day, the NAV of a Mutual Fund remains same for the day and is updated only at the end of the day.
Having higher NAV does not mean that a mutual Fund is costly and vice versa, having low NAV doesn’t mean that a Mutual Fund is cheap. investors should not base their buying decision solely on the value of NAV.