Understanding Net Asset Value (NAV)

In the previous video, we learned about the structure of an asset management company (AMC) and how a mutual fund scheme works. Let’s say, you decide to start investing in a mutual fund scheme, the units will be allotted to you at a specific price. This price is called the Net Asset Value (NAV). The NAV of a mutual fund scheme represents the current market value of your investments. Just like the price of a stock, the NAV of a mutual fund scheme changes every day based on the performance of the securities inside the scheme. Remember, a mutual fund is a wrapper that holds assets like stocks, bonds, and commodities like gold.

In this video, @Karthik explains what the Net Asset Value (NAV) of a mutual fund scheme is and how it’s calculated.

You can learn more about the concept of NAV in this Varsity chapter;