Your ETF has 2 prices and why it matters to max your returns

“I bought the ETF at Rs 206, but the NAV says Rs 202. Why the mismatch?” If you’ve asked this question, you’re not alone. Welcome to the world of ETFs, where the price you pay — and what your investment is actually worth — aren’t always the same. This dual-price phenomenon is one of the most overlooked aspects of ETFs. And it has real implications for your returns. The two faces of an ETF Every exchange-traded fund has two prices — the NAV (net asset value) and the market price. NAV reflects the value of the ETF’s holdings and is calculated after market hours. The market price is what you pay on the stock exchange, and it fluctuates in real time. Ideally, these two prices should match. But in the real world, they often don’t. What exactly is the NAV? NAV is the per-unit value of the ETF’s underlying portfolio — the stocks or bonds it holds. For example, if a Nifty 50 ETF holds Rs 100 crore worth of stocks and has one crore units, its NAV is Rs 100. But unlike mutu

This article was originally published on July 07, 2025.