What is NAV? (Net Asset Value)
NAV stands for Net Asset Value; represents fund's per share market value. This is the price at which investor buys funds i.e. bid price and sell it i.e. redemption price.
Calculating NAVs - calculating mutual fund net asset values is easy. Simply take the current market value of the fund's net assets (securities held by the fund minus any liabilities) and divide by the number of shares outstanding.
So if a fund had net assets of Rs.50 lakh and there are one lakh shares of the fund, then the price per share (or NAV) is Rs.50.00.