What the NAV of a fund tells you

Mutual fund investors inevitably come across the abbreviated term 'NAV'. No matter how hard they try to decipher finance jargon, this is one term that keeps popping up. Especially, if you are buying or selling mutual fund units. So, knowing what NAV is can help you make more informed decisions when investing. How is the NAV of a mutual fund calculated? NAV or net asset value is the sum total of the market value of all the shares held in a portfolio, including cash, minus any liabilities, divided by the total number of units outstanding. Thus, the NAV of a mutual fund unit is nothing but the 'book value' of a unit. I

This article was originally published on September 07, 2020, and last updated on September 09, 2024.