NAV (Net Asset Value) = (Total Assets – Total Liabilities) / Total Outstanding Units
Total Assets include market value of all securities, cash, receivables, and other assets
Total Liabilities include expenses, payables, and other obligations
Total Outstanding Units = number of mutual fund units held by investors
NAV per unit = Net Asset Value / Total Outstanding Units
Example: If Total Assets = 10,00,000 and Total Liabilities = 50,000, Net Asset Value = 9,50,000
Example: If Outstanding Units = 1,00,000, NAV per unit = 9.50
NAV is usually calculated at the end of each trading day
NAV changes with market value of the fund’s holdings