9 Things to know about mutual fund NAV


NAV of mutual fundshas become a buzz word now. And almost every first-time investor wants to know what NAV is and how NAV is calculated. While NAV is similar to the share price there are major differences between the two.

Here’s what mutual fund investors should know about NAV:

  1. What is Mutual Fund NAV?

NAV (Net Asset Value) is the cost of 1 unit of a mutual fund.Mutual funds are separated into units. When retail investors like you invest in a mutual fund, you are offered units of the mutual fund. How many units you will get depends on the NAV and the amount you have invested.

  1. Should I pay attention to the NAV?

No, as NAV plays a negligible role in mutual fund investment and its performance. Don’t make the mistake of buying the mutual fund with lower NAV. While investing in any mutual fund you should consider more important factors such as past performance, AUM size, risk factor, alpha, beta, etc.

  1. How can I know the NAV of a Mutual Fund?

You can find the NAV of a mutual fund on the fund house’s website. All you need to do is log in to your account, search the mutual fund you want to find the NAV of, and click on that mutual fund name. You will find the NAV and other details of the mutual fund on the page.

  1. What is the difference between NAV and AUM?

AUM (Asset Under Management)includes all the assets the mutual fund has invested in as well as the cash held by it.While investing, you should ignore NAV but not AUM.

  1. When is NAV updated?

Mutual funds update NAV at the end of every working day. According to the SEBI’s mandates the NAV is to be updated by 9 pm every day. Most mutual funds update NAV on their own specific time before 9 pm to update AUM. You can check the latest NAV of mutual funds here!

  1. Should I invest in a mutual fund with a high NAV?

As stated above, your decision should not be only on NAV. NAV is not important when it comes to mutual fund investment. However, other factors of the mutual fund such as past performance and AUM seem good you can invest in the mutual fund with high NAV.

  1. How do Sensex and Nifty impact the NAV value for a mutual fund?

That dependson what type of mutual fund it is. Whether Sensex or Nifty affect the NAV and to what degree depends on the type of assets held by that mutual fund.

  1. Are NAV and Stock Price same?

Stock price changes with the market demand of that stock, while NAV is immune to the demand.

  1. What Is the NAV of a SIP?

NAV of a SIP is the same as the NAV of a mutual fund.SIP is a way of investing in a mutual fund.

I hope this has helped you clear most of the doubts about NAV and you are confident in investing inmutual funds.