What is net asset value

Net Asset Value is the market value per share of a mutual fund scheme. The per unit NAV is the net asset value of the scheme divided by the number of units outstanding on the valuation date.

Typically, NAV is calculated by summing the current market values of all securities held by the fund, adding in cash and any accrued income, then subtracting liabilities and dividing the result by the number of units outstanding. 

Net Value of an Asset = (Total Asset – Total Liabilities)/ Total Outstanding Shares

For example, if the market value of securities of a mutual fund scheme is ₹200 crore and the mutual fund has issued 10 crore units of ₹10 each to the investors, then the NAV per unit of the fund is ₹20 (i.e., ₹200 crore/10 crore).

NAV of a fund changes on a daily basis, depending on the price movements of all the stocks in the portfolio of the concerned scheme. Every mutual fund publishes the NAV of all its fund on a daily basis, and you can find it on AMC's website, websites of mutual fund data provider and on your ArihantPlus app.