NAV in Mutual Funds
5paisa Research Team
Last Updated: 20 Feb, 2025 07:01 PM IST

Content
- What is NAV?
- How is NAV relevant to investors?
- How is NAV calculated?
- Mutual Fund NAV vs Stock Prices
- Conclusion
- FAQs
What is NAV?
As a new mutual fund investor, a mutual fund's NAV is a crucial value to understand. But, what is the full form of NAV? The NAV full form in mutual funds is Net Asset Value — simply put, it is the unit price of a mutual fund. It is the price at which investors buy (bid price) fund units and sell them (redemption price), from or to a fund company.
While stock prices constantly fluctuate during trading hours, NAVs in mutual funds are determined daily. A mutual fund’s NAV is calculated at the end of the day based on the closing price of all securities owned after making appropriate adjustments. Investment fund expenses, such as fund administration, management, distribution, etc., are charged in proportion to the fund's assets and adjusted in the NAV of the mutual fund.
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