{"id":28435,"date":"2026-06-22T09:53:00","date_gmt":"2026-06-22T09:53:00","guid":{"rendered":"https:\/\/wp-api.pocketful.in\/blog\/?post_type=mutual-funds&#038;p=28435"},"modified":"2026-06-22T09:53:00","modified_gmt":"2026-06-22T09:53:00","slug":"what-is-nav-in-mutual-fund","status":"publish","type":"mutual-funds","link":"https:\/\/wp-api.pocketful.in\/blog\/mutual-funds\/what-is-nav-in-mutual-fund\/","title":{"rendered":"What Is NAV in Mutual Funds?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">NAV is a key factor people look at when investing in mutual funds. It is assumed that a lower NAV is better. This will offer you good returns when the mutual fund grows. But even after this, it is wrong to assume that a good NAV is always one which is lower.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is why you must know what is a good NAV for a mutual fund. By doing so, you can actually plan your investment better. But the question is how?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So, read this guide to know what a good NAV is. But before that, let us explore the meaning of NAV.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/wp-api.pocketful.in\/blog\/mutual-funds\/what-is-nav-in-mutual-fund\/#NAV_Full_Form_and_Meaning\" title=\"NAV Full Form and Meaning\">NAV Full Form and Meaning<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/wp-api.pocketful.in\/blog\/mutual-funds\/what-is-nav-in-mutual-fund\/#How_Is_NAV_Calculated\" title=\"How Is NAV Calculated?\">How Is NAV Calculated?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/wp-api.pocketful.in\/blog\/mutual-funds\/what-is-nav-in-mutual-fund\/#Does_NAV_Determine_Mutual_Fund_Returns\" title=\"Does NAV Determine Mutual Fund Returns?\">Does NAV Determine Mutual Fund Returns?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/wp-api.pocketful.in\/blog\/mutual-funds\/what-is-nav-in-mutual-fund\/#What_Is_a_Good_NAV_for_a_Mutual_Fund\" title=\"What Is a Good NAV for a Mutual Fund?\">What Is a Good NAV for a Mutual Fund?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/wp-api.pocketful.in\/blog\/mutual-funds\/what-is-nav-in-mutual-fund\/#Why_Some_Funds_Have_Higher_NAVs\" title=\"Why Some Funds Have Higher NAVs\">Why Some Funds Have Higher NAVs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/wp-api.pocketful.in\/blog\/mutual-funds\/what-is-nav-in-mutual-fund\/#Why_New_Mutual_Funds_Usually_Have_Lower_NAVs\" title=\"Why New Mutual Funds Usually Have Lower NAVs\">Why New Mutual Funds Usually Have Lower NAVs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/wp-api.pocketful.in\/blog\/mutual-funds\/what-is-nav-in-mutual-fund\/#How_Much_NAV_Is_Good_in_Mutual_Fund_Investments\" title=\"How Much NAV Is Good in Mutual Fund Investments?\">How Much NAV Is Good in Mutual Fund Investments?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/wp-api.pocketful.in\/blog\/mutual-funds\/what-is-nav-in-mutual-fund\/#Factors_That_Matter_More_Than_NAV\" title=\"Factors That Matter More Than NAV\">Factors That Matter More Than NAV<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/wp-api.pocketful.in\/blog\/mutual-funds\/what-is-nav-in-mutual-fund\/#NAV_in_SIP_Investments\" title=\"NAV in SIP Investments\">NAV in SIP Investments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/wp-api.pocketful.in\/blog\/mutual-funds\/what-is-nav-in-mutual-fund\/#Common_Myths_About_Mutual_Fund_NAV\" title=\"Common Myths About Mutual Fund NAV\">Common Myths About Mutual Fund NAV<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/wp-api.pocketful.in\/blog\/mutual-funds\/what-is-nav-in-mutual-fund\/#How_to_Choose_a_Mutual_Fund_Instead_of_Looking_at_NAV\" title=\"How to Choose a Mutual Fund Instead of Looking at NAV\">How to Choose a Mutual Fund Instead of Looking at NAV<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/wp-api.pocketful.in\/blog\/mutual-funds\/what-is-nav-in-mutual-fund\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/wp-api.pocketful.in\/blog\/mutual-funds\/what-is-nav-in-mutual-fund\/#Frequently_Asked_Questions_FAQs\" title=\"Frequently Asked Questions (FAQs)\">Frequently Asked Questions (FAQs)<\/a><\/li><\/ul><\/nav><\/div>\n<h2 id=\"h-nav-full-form-and-meaning\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"NAV_Full_Form_and_Meaning\"><\/span>NAV Full Form and Meaning<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The NAV full form is Net Asset Value. In the mutual funds, the value of one unit of the fund is shown after all the assets and liabilities are considered. This value is calculated at the end of every trading day.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So, when you buy or sell mutual funds, the value is calculated based on the NAV.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">No matter whether you invest in a lump sum or SIP, the meaning of the NAV remains the same. But the benefit that you get is when you invest via SIP. The NAV keeps on changing. So, if the NAV is low, you will be allotted more units. This will give you benefits with long-term investing.&nbsp;<\/p>\n\n\n\n<h2 id=\"h-how-is-nav-calculated\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Is_NAV_Calculated\"><\/span>How Is NAV Calculated?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Mutual fund houses calculate NAV using a standard formula.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>NAV = (Total Assets &#8211; Total Liabilities) \u00f7 Total Outstanding Units<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Where<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Total Assets include stocks, bonds, cash holdings, and other investments.<\/li>\n\n\n\n<li>Total Liabilities include operating expenses and other obligations.<\/li>\n\n\n\n<li>Outstanding Units represent the total units held by investors.<\/li>\n<\/ul>\n\n\n\n<h3 id=\"h-example-of-nav-calculation\" class=\"wp-block-heading has-medium-font-size\">Example of NAV Calculation<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Suppose a mutual fund has:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Total assets worth \u20b9500 crore<\/li>\n\n\n\n<li>Liabilities worth \u20b920 crore<\/li>\n\n\n\n<li>24 crore outstanding units<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">To find NAV, let&#8217;s find the actual net value first.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u20b9500 crore &#8211; \u20b920 crore = \u20b9480 crore<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Now, let&#8217;s divide it by the units;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u20b9480 crore \u00f7 24 crore units = \u20b920<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">NAV = \u20b920 per unit.<\/p>\n\n\n\n<h2 id=\"h-does-nav-determine-mutual-fund-returns\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Does_NAV_Determine_Mutual_Fund_Returns\"><\/span>Does NAV Determine Mutual Fund Returns?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">This is a common question that people ask. Many people think that lower NAV means better returns and profits.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But in real conditions, this is not. The returns are not based on the NAV of the mutual funds. To understand this, here is a quick example for you:<\/p>\n\n\n\n<figure class=\"wp-block-table has-small-font-size\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">Fund<\/th><th class=\"has-text-align-left\" data-align=\"left\">NAV<\/th><th class=\"has-text-align-left\" data-align=\"left\">Investment Amount<\/th><th class=\"has-text-align-left\" data-align=\"left\">Units Purchased<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\">Fund A<\/td><td class=\"has-text-align-left\" data-align=\"left\">\u20b920<\/td><td class=\"has-text-align-left\" data-align=\"left\">\u20b910,000<\/td><td class=\"has-text-align-left\" data-align=\"left\">500<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Fund B<\/td><td class=\"has-text-align-left\" data-align=\"left\">\u20b9100<\/td><td class=\"has-text-align-left\" data-align=\"left\">\u20b910,000<\/td><td class=\"has-text-align-left\" data-align=\"left\">100<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Now, from the comparison, one thing is clear: NAV has a direct impact on the units allotted.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Now, there are chances that both these grow by the same percentage, and so your returns will be the same. If Fund A has an annual return of 2% and Fund B has an annual return of 18%, the latter will provide higher returns irrespective of its NAV.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So, as an investor, you would need to focus on factors like market conditions, fund strategy, and portfolio quality.<\/p>\n\n\n\n<h2 id=\"h-what-is-a-good-nav-for-a-mutual-fund\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_a_Good_NAV_for_a_Mutual_Fund\"><\/span>What Is a Good NAV for a Mutual Fund?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The definition of good NAV is not linked to the amount in any way. It is all based on the mutual fund and management. Also, a good NAV will differ for every investor.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One who is looking to invest a low amount might look for a low NAV, so that more units can be allotted. A person looking for wealth creation might look for a fund with good returns even when the NAV is high. So, this is good for them.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>So, some factors that might contribute to the same are:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Historical performance<\/li>\n\n\n\n<li>Risk-adjusted returns<\/li>\n\n\n\n<li>Fund manager experience<\/li>\n\n\n\n<li>Portfolio diversification<\/li>\n\n\n\n<li>Expense ratio<\/li>\n\n\n\n<li>Investment objective<\/li>\n\n\n\n<li>Consistency across market cycles<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">These factors provide a clearer picture of a fund&#8217;s potential than its NAV.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Read Also:<\/strong> <a href=\"https:\/\/www.pocketful.in\/blog\/what-is-inav-in-etfs\/\">What Is iNAV in ETFs?<\/a><\/p>\n\n\n\n<h2 id=\"h-why-some-funds-have-higher-navs\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_Some_Funds_Have_Higher_NAVs\"><\/span>Why Some Funds Have Higher NAVs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Many investors wonder why certain mutual funds have NAVs of \u20b9300, \u20b9500, or even higher.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This usually happens because the fund has been operating successfully for a long period.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As the underlying investments appreciate over time, the NAV gradually increases.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A fund launched at \u20b910 NAV may grow to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u20b925 after a few years<\/li>\n\n\n\n<li>\u20b980 after a decade<\/li>\n\n\n\n<li>\u20b9300 or more over a longer period<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">A higher NAV often reflects growth accumulated over time rather than an expensive investment.<\/p>\n\n\n\n<h2 id=\"h-why-new-mutual-funds-usually-have-lower-navs\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_New_Mutual_Funds_Usually_Have_Lower_NAVs\"><\/span>Why New Mutual Funds Usually Have Lower NAVs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">New Fund Offers (NFOs) are generally launched at an NAV of \u20b910. This is why many people think that the new funds are cheaper compared to those already existing in the market.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But if you evaluate this, you might find that there is no benefit for you in general.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Consider these two scenarios:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Existing Fund: NAV \u20b9100<\/li>\n\n\n\n<li>New Fund: NAV \u20b910<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If both funds invest in similar stocks and generate identical returns, the investor&#8217;s percentage gain will be the same.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A lower NAV only means you receive more units. It does not mean you earn higher returns.<\/p>\n\n\n\n<h2 id=\"h-how-much-nav-is-good-in-mutual-fund-investments\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Much_NAV_Is_Good_in_Mutual_Fund_Investments\"><\/span>How Much NAV Is Good in Mutual Fund Investments?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">When investors ask, how much NAV is good in mutual fund investing, the answer is simple.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The NAV itself is not a measure of quality.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Instead of looking for a specific NAV level, evaluate whether the fund:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Meets your investment goals<\/li>\n\n\n\n<li>Has delivered consistent performance<\/li>\n\n\n\n<li>Maintains reasonable risk levels<\/li>\n\n\n\n<li>Has a strong portfolio<\/li>\n\n\n\n<li>Is managed by an experienced fund house<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">A fund with a \u20b9300 NAV may be a better investment than one with a \u20b910 NAV if it has a stronger track record and better fundamentals.<\/p>\n\n\n\n<h2 id=\"h-factors-that-matter-more-than-nav\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Factors_That_Matter_More_Than_NAV\"><\/span>Factors That Matter More Than NAV<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">When you are investing in mutual funds, you should focus on various factors. These are as follows:<\/p>\n\n\n\n<h3 id=\"h-1-fund-performance\" class=\"wp-block-heading has-medium-font-size\">1. Fund Performance<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Start by checking the fund&#8217;s performance in the past years. Consider 1,3,5, or even 10 years history check. If there is stability in long-term, then it is better for you.<\/p>\n\n\n\n<h3 id=\"h-2-risk-profile\" class=\"wp-block-heading has-medium-font-size\">2. Risk Profile<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A fund should align with your risk tolerance. This includes the following things to check for ease:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Large-cap funds generally carry lower risk.<\/li>\n\n\n\n<li>Mid-cap funds carry moderate risk.<\/li>\n\n\n\n<li>Small-cap funds can be more volatile.<\/li>\n<\/ul>\n\n\n\n<h3 id=\"h-3-expense-ratio\" class=\"wp-block-heading has-medium-font-size\">3. Expense Ratio<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The expense ratio affects your net returns. So, if you are checking a fund, look for one with a lower expense ratio, as this will ensure the maximum amount gets invested. This is beneficial in longer run.<\/p>\n\n\n\n<h3 id=\"h-4-fund-manager-track-record\" class=\"wp-block-heading has-medium-font-size\">4. Fund Manager Track Record<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The experience and investment approach of the fund manager can influence performance over time.<\/p>\n\n\n\n<h3 id=\"h-5-portfolio-quality\" class=\"wp-block-heading has-medium-font-size\">5. Portfolio Quality<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Check the sectors, stocks, and assets held by the fund. If a fund is one with proper diversification, then the risk will be better managed, and so your returns will be good.<\/p>\n\n\n\n<h2 id=\"h-nav-in-sip-investments\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"NAV_in_SIP_Investments\"><\/span>NAV in SIP Investments<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Many investors starting a Systematic Investment Plan want to understand how NAV affects their investments.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In SIPs, your fixed investment amount purchases units based on the prevailing NAV.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>For example:<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table has-small-font-size\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">Month<\/th><th class=\"has-text-align-left\" data-align=\"left\">Investment<\/th><th class=\"has-text-align-left\" data-align=\"left\">NAV<\/th><th class=\"has-text-align-left\" data-align=\"left\">Units Purchased<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\">January<\/td><td class=\"has-text-align-left\" data-align=\"left\">\u20b95,000<\/td><td class=\"has-text-align-left\" data-align=\"left\">\u20b920<\/td><td class=\"has-text-align-left\" data-align=\"left\">250<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">February<\/td><td class=\"has-text-align-left\" data-align=\"left\">\u20b95,000<\/td><td class=\"has-text-align-left\" data-align=\"left\">\u20b925<\/td><td class=\"has-text-align-left\" data-align=\"left\">200<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">March<\/td><td class=\"has-text-align-left\" data-align=\"left\">\u20b95,000<\/td><td class=\"has-text-align-left\" data-align=\"left\">\u20b918<\/td><td class=\"has-text-align-left\" data-align=\"left\">277.78<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li>When NAV falls, you purchase more units.<\/li>\n\n\n\n<li>When NAV rises, you purchase fewer units.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">This process helps average the purchase cost over time and is known as rupee cost averaging.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Because of this feature, SIP investors generally do not need to worry about finding the &#8220;perfect&#8221; NAV.<\/p>\n\n\n\n<h2 id=\"h-common-myths-about-mutual-fund-nav\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Common_Myths_About_Mutual_Fund_NAV\"><\/span>Common Myths About Mutual Fund NAV<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">As an investor, there are certain myths that you should be careful of. These are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Returns depend on portfolio performance, not the NAV level.<\/li>\n\n\n\n<li>A higher NAV often reflects long-term growth rather than overvaluation.<\/li>\n\n\n\n<li>A \u20b910 NAV does not make an NFO superior to an established fund.<\/li>\n\n\n\n<li>Mutual fund NAV and stock prices operate differently.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"h-how-to-choose-a-mutual-fund-instead-of-looking-at-nav\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Choose_a_Mutual_Fund_Instead_of_Looking_at_NAV\"><\/span>How to Choose a Mutual Fund Instead of Looking at NAV<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A practical approach is to compare funds based on meaningful parameters.<\/p>\n\n\n\n<figure class=\"wp-block-table has-small-font-size\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">Evaluation Factor<\/th><th class=\"has-text-align-center\" data-align=\"center\">Importance<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\">Long-term returns<\/td><td class=\"has-text-align-center\" data-align=\"center\">High<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Risk-adjusted performance<\/td><td class=\"has-text-align-center\" data-align=\"center\">High<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Expense ratio<\/td><td class=\"has-text-align-center\" data-align=\"center\">High<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Fund manager quality<\/td><td class=\"has-text-align-center\" data-align=\"center\">High<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Portfolio diversification<\/td><td class=\"has-text-align-center\" data-align=\"center\">High<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">NAV value<\/td><td class=\"has-text-align-center\" data-align=\"center\">Low<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">This approach helps investors focus on factors that genuinely impact wealth creation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Read Also:<\/strong> <a href=\"https:\/\/www.pocketful.in\/blog\/mutual-funds\/practical-tips-for-investing-in-mutual-funds-for-beginners-in-india\/\">Practical Tips for Investing in Mutual Funds for Beginners in India<\/a><\/p>\n\n\n\n<h2 id=\"h-conclusion\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Knowing the NAV full form in a mutual fund or the NAV full form in SIP is very important. But at the same time, it is important to understand that there is no such thing as a good NAV. Also, the NAV has no direct impact on your returns.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So, as an investor, you need to analyse all the aspects before you invest. Assessing the options with the help of experts and through platforms like <a href=\"https:\/\/www.pocketful.in\/\">Pocketful<\/a> can help you greatly. So, <a href=\"https:\/\/www.pocketful.in\/mutual-funds\">start investing<\/a> right today.<\/p>\n\n\n\n<figure class=\"wp-block-table has-small-font-size\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">S.NO.<\/th><th class=\"has-text-align-left\" data-align=\"left\">Check Out These Interesting Posts You Might Enjoy!<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\">1<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/mutual-funds\/top-gold-mutual-funds-in-india\/\">Top Gold Mutual Funds in India<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">2<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/mutual-funds\/best-silver-mutual-funds-in-india\/\">Best Silver Mutual Funds to invest in India<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">3<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/mutual-funds\/best-brokers-for-mutual-funds\/\">Best Brokers for Mutual Funds<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">4<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/mutual-funds\/best-money-market-mutual-funds-in-india\/\">Best Gold Investment Schemes in India<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">5<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/mutual-funds\/best-money-market-mutual-funds-in-india\/\">Best Money Market Mutual Funds in India<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">6<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/mutual-funds\/best-thematic-mutual-funds-in-india\/\">Best Thematic Mutual Funds in India<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">7<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/mutual-funds\/top-mutual-fund-distributors-in-india\/\">Top 10 Mutual Fund Distributors in India<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">8<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/mutual-funds\/corporate-bond-funds\/\">Best Corporate Bond Funds in India<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">9<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/mutual-funds\/best-long-term-mutual-funds\/\">Best Long-Term Mutual Funds to Invest in India<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">10<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/mutual-funds\/best-mid-cap-mutual-funds\/\">Best Mid-Cap Mutual Funds in India<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id=\"h-frequently-asked-questions-faqs\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions_FAQs\"><\/span>Frequently Asked Questions (FAQs)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"saswp-faq-block-section\"><ol style=\"list-style-type:none\"><li style=\"list-style-type: none\"><h3 class=\"\">What is the best NAV for mutual funds?<\/h3><p class=\"saswp-faq-answer-text\">There is no best NAV for a mutual fund. A lower or higher NAV does not indicate whether a fund is better. This is why you should consider factors like past performance, manager, and portfolio for insights.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">Is a higher or lower NAV better?<\/h3><p class=\"saswp-faq-answer-text\">Neither is inherently better. NAV impacts the units that are being allotted to you, but returns are based on management, market, portfolio, and other factors.\u00a0<\/p><li style=\"list-style-type: none\"><h3 class=\"\">How to know if NAV is good or bad?<\/h3><p class=\"saswp-faq-answer-text\">NAV itself is not good or bad. To evaluate a mutual fund, look at historical returns, risk levels, consistency, fund management quality, and portfolio composition rather than the NAV number.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">Which NAV will I get for mutual fund?<\/h3><p class=\"saswp-faq-answer-text\">You receive the applicable NAV based on the time your investment transaction is processed and accepted according to mutual fund cut-off timings and regulatory guidelines.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">What is a normal NAV?<\/h3><p class=\"saswp-faq-answer-text\">There is no normal NAV range. Mutual funds can have NAVs ranging from \u20b910 to several hundred rupees. The NAV value alone does not determine the quality or attractiveness of the investment.<\/p><\/ul><\/div>","protected":false},"excerpt":{"rendered":"<p>NAV is a key factor people look at when investing in mutual funds. It is assumed that a lower NAV is better. This will offer you good returns when the mutual fund grows. But even after this, it is wrong to assume that a good NAV is always one which is lower.&nbsp; This is why [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":28439,"parent":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[19],"tags":[],"class_list":["post-28435","mutual-funds","type-mutual-funds","status-publish","format-standard","has-post-thumbnail","hentry","category-mutual-funds"],"acf":{"freelancer":"Harjyot"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.13 (Yoast SEO v21.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What Is NAV in Mutual Funds? 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Meaning, Formula & Investment Guide","description":"Find out what makes a good NAV in mutual funds and why fund performance matters more than NAV when investing.","robots":{"index":"noindex","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"og_locale":"en_US","og_type":"article","og_title":"What Is NAV in Mutual Funds?","og_description":"Find out what makes a good NAV in mutual funds and why fund performance matters more than NAV when investing.","og_url":"https:\/\/wp-api.pocketful.in\/blog\/mutual-funds\/what-is-nav-in-mutual-fund\/","og_site_name":"Pocketful","article_publisher":"https:\/\/www.facebook.com\/Pocketful.HQ\/","og_image":[{"width":1497,"height":1080,"url":"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2026\/06\/NAV-in-Mutual-Funds.jpg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_site":"@Pocketful_HQ","twitter_misc":{"Est. reading time":"7 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/wp-api.pocketful.in\/blog\/mutual-funds\/what-is-nav-in-mutual-fund\/","url":"https:\/\/wp-api.pocketful.in\/blog\/mutual-funds\/what-is-nav-in-mutual-fund\/","name":"What Is NAV in Mutual Funds? 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