Investor Corner/The asset classes/Mutual Fund Core Concepts
2.3.6 Net Asset Value (NAV)
Net Asset Value is the per-unit market value of a fund's assets minus its liabilities. You buy and sell mutual fund units at NAV, subject to the fund's cut-off timing rules.
How the number is calculated
At the end of each business day, a fund adds up the market value of everything it holds, subtracts any liabilities, and divides by the total number of units outstanding. That result is the NAV, and it is what determines the price at which new units are bought or existing units are redeemed for that day.
A number that changes with the underlying portfolio
NAV rises and falls in direct proportion to the market value of the securities the fund holds. A higher NAV does not mean a fund is more expensive or a poorer buy compared to a fund with a lower NAV; it simply reflects how the fund's underlying investments have performed since it was launched. Two funds holding an identical portfolio, launched at different NAVs, would still deliver the same percentage return.
Why NAV alone tells you very little
A common misconception is treating a lower NAV as cheaper and therefore more room to grow, similar to how a lower stock price is sometimes mistakenly seen as more attractive. What actually matters for future performance is the quality and prospects of the underlying holdings, not the NAV figure itself, which is really just an accounting artefact of when the fund launched.
How PriLytics helps. PriLytics uses live NAVs to value every fund you hold, so your invested amount, current value and gain are always calculated using accurate, current figures. See holdings and returns.