Net Asset Value

Net Asset Value (NAV) is the total value of an entity's assets minus its liabilities, typically used to measure the value of a mutual fund or exchange-traded fund (ETF). It is calculated by dividing the total value of the fund’s assets by the number of outstanding shares. NAV is calculated daily and reflects the fund’s per-share value.

Example: If a mutual fund has assets worth ₹10,000,000 and liabilities of ₹2,000,000, the NAV would be calculated as:

• NAV = (Assets - Liabilities) / Outstanding shares
  
  
• NAV = (₹10,000,000 - ₹2,000,000) / 1,000,000 = ₹8 per share.