What is Net Asset Value (NAV)?
- It refers to the current market value of a single unit of the fund’s holdings, i.e., the price of a single unit of the fund.
- NAV is the price at which an investor can buy one unit of a fund or redeem one unit on a particular day.
- NAV changes daily since the market value of the assets that the mutual fund holds also fluctuate on a daily basis.
Mathematically NAV =
(Market value of the securities held)/(Total number of units of the scheme)