What is Net Asset Value (NAV)?
Net Asset Value (NAV) is the price of a unit of a mutual fund scheme. Often associated with mutual funds and ETFs, the NAV helps an investor determine if the fund is overvalued or undervalued.
NAV = (Value of Assets - Value of Liabilities) / No. of outstanding units
For example, if the NAV of a scheme is Rs. 150, you will have to pay Rs. 150 per unit. Similarly, if you sell a unit of the scheme, you will receive Rs. 150 per unit.