Reviewed by: Fibe Research Team

NAV represents the per-unit value of a mutual fund scheme. It tells you how much each unit of the fund is worth on a given day.
Let’s say,
if you invest ₹10,000 in a mutual fund and the NAV on that day is ₹50, you will get 200 units of the fund. If the NAV increases to ₹55 over time, the value of your investment goes up, even though the number of units you hold remains the same.
Knowing the NAV formula and how it works helps you track your investment better and make smarter financial decisions.
NAV in mutual funds is the market value per unit of the scheme. It is calculated by dividing the total value of the fund’s assets (after subtracting liabilities) by the number of outstanding units.
NAV = (Assets – Liabilities) ÷ Number of Outstanding Units
Imagine a mutual fund with:
NAV = (100 – 5) ÷ 10 = ₹9.5 per unit. This is the price you pay to buy a unit or the amount you receive when redeeming one.
This is known as the nav formula in mutual fund terms and it’s the same across fund types.
The mutual fund nav calculation process involves two components:
Assets include everything the fund owns. This could be:
Liabilities are the obligations the fund has to meet. These could be:
When you subtract the total liabilities from the total assets and divide the result by the number of units, you get the mutual fund NAV calculation.
So, if you’ve ever wondered how to calculate NAV of mutual fund, the process is simple: check the fund’s assets and liabilities, apply the formula and divide by units.
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As an investor, NAV helps you:
Remember, how to calculate NAV is important, but what’s even more important is observing its growth trend over time.
Final Thoughts
Understanding NAV, the nav formula in mutual fund, and its calculation gives you clarity about your investment’s worth. However, don’t make decisions based on NAV alone—consider the scheme’s returns, expense ratio, fund manager’s track record and your financial goals.
And here’s the best part — if you need liquidity, you can get instant cash up to ₹10 lakhs against your mutual fund portfolio with Fibe. You continue to grow your investments while meeting your financial needs.
Download the Fibe App today and explore Loan Against Mutual Funds to make the most of your portfolio.
No, NAV cannot go negative. It may rise or fall with market volatility, but since NAV = (Assets – Liabilities) ÷ Outstanding Units, the result will always remain non-negative.
You can check NAV in two simple ways: