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WHAT IS NAV? NAV stands for Net Asset Value. The performance of a mutual fund scheme is denoted by its NAV per unit. NAV per unit is the market value of securities of a scheme divided by the total number of units of the scheme on a given date.
Suppose there are two schemes of the same category and same portfolio, one of which has a lower NAV while the other has higher NAV. Yes, lower NAV will help you in gaining more number of units for sure, while higher NAV will give you fewer units.
Net asset value, or NAV, represents the value of an investment fund and is calculated by adding the total value of the funds assets and subtracting its liabilities. Mutual funds and ETFs use NAV to calculate the price per share of the fund.
The NAV of every mutual fund scheme is declared every day. This is because the value of the assets can change on each business day. For example, if a mutual fund scheme has an AUM of Rs 100 Cr, these assets value may become Rs 120 Cr tomorrow. This will, in turn, increase the NAV and your returns/investment value.
The change in the NAV value occurs because the prices of the underlying securities in the portfolio changes every day. Each mutual fund is a basket of securities and /or debt instruments held in the portfolio. The market value of the securities and debt instrument changes as they are traded on stock exchanges.

People also ask

Net asset value, or NAV, of an investment company is the companys total assets minus its total liabilities.
It is the price at which investors buy (bid price) fund shares from a fund company and sell them (redemption price) to a fund company. A funds NAV is calculated by dividing the total value of all the cash and securities in a funds portfolio, less any liabilities, by the number of shares outstanding.

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