GreenFunds
Money word, in plain English

NAV

Also called Net Asset Value

Net Asset Value, the per-unit price of a mutual fund, set once a day.

Pricing Figures verified September 2026

Example. If a scheme's NAV is ₹42, one unit costs ₹42 that day.

What NAV really is

NAV is the price of one unit of a mutual fund. Add up everything the scheme owns, subtract what it owes, then divide by the number of units. Every investor buying or selling on a given day uses the same NAV, so nobody gets a better deal by transacting earlier in the day.

The fund works it out once each business day, after markets close. So you never know your exact price at the moment you place the order. You're buying at a price that gets fixed later that evening.

  • It rises when the scheme's holdings gain value
  • It rises when the scheme earns interest or dividends
  • It falls when holdings lose value or expenses are charged

How your order gets priced

The NAV you get depends on when your money reaches the fund, not when you tapped buy. SEBI set this rule so every investor is treated the same way.

For equity and most debt funds the cut-off is 3 pm. You get the NAV of the business day your money is actually available to the fund, before that day's cut-off. Pay late and you get the next day's NAV instead.

Liquid and overnight funds cut off at 1.30 pm, and they work backwards. Get both your application and your money in before the cut-off, and you receive the previous day's closing NAV.

Selling is simpler. Put your redemption in before 3 pm on a business day and you get that day's NAV. Miss it and you wait for the next business day.

Why a low NAV isn't cheap

This is the mistake that costs beginners the most. A fund at ₹15 is not cheaper than one at ₹450. NAV isn't a share price. It mostly reflects how long the scheme has run and how much it has grown since.

Put ₹10,000 into each. One gives you 666.67 units, the other 22.22 units. If both rise 10 percent, both are worth ₹11,000. Your return comes from what the fund holds, never from its NAV.

How it's calculated

NAV = (Total assets minus liabilities other than to unitholders) ÷ Number of outstanding units

  • Total assets means holdings at market value, plus income earned but not yet received
  • Liabilities means fees and amounts payable, not money owed to unitholders
  • Outstanding units means every unit held by every investor that day
Worked example. A scheme holds ₹800 crore of stocks and ₹150 crore of bonds. It has earned ₹6 crore of interest that hasn't landed yet, and owes ₹4 crore in fees. Net assets are ₹952 crore. Divide by 80 crore units and the NAV is ₹11.90.

Key facts

Who sets it
The AMC, once each business day after markets close
Cut-off, equity and debt
3.00 pmSEBI cut-off timing rules. Doesn't apply to NFOs or international schemes.
Cut-off, liquid and overnight
1.30 pmSEBI cut-off timing rules.
Decimal places
4 for index, liquid and other debt funds. At least 2 for equity and balanced.SEBI accounting and reporting norms.
Fractional units
Allowed. You can hold part of a unit.
What you actually pay
NAV when you buy. NAV minus exit load when you sell.

Common mistakes

Myth. A fund with a lower NAV is cheaper, so my money goes further.

Actually. You get more units, each worth less. ₹10,000 buys the same value either way. Returns come from what the scheme holds.

Myth. I invested at 11 am, so I'll get that morning's price.

Actually. You get the NAV of the day your money actually reaches the fund, before the cut-off. Tapping buy earlier doesn't change it.

Myth. My NAV went up, so the fund did well.

Actually. Compare it against the scheme's benchmark over the same period. A fund can rise while its benchmark rises more.

Myth. NAV dropped the day a dividend was paid, so I lost money.

Actually. That money left the scheme and came to you. Your total value is unchanged.

For your NISM V-A exam

Skip this if you are here as an investor rather than a candidate.

  • Know both formulas. Net assets ÷ units, and total assets minus non-unitholder liabilities ÷ units
  • Cut-offs get asked directly. 3 pm for equity and debt, 1.30 pm for liquid
  • For a purchase of any amount, funds must be available for utilisation before the cut-off
  • A liquid fund purchase can get the closing NAV of the day before the application
  • Decimals differ. 4 places for index, liquid and debt funds, 2 for equity
  • Cut-off timing doesn't apply to NFOs or international schemes
  • Mark to market means valuing holdings at current market price, not at cost

Verified against the NISM Series V-A workbook, March 2026 edition. GreenFunds isn't affiliated with NISM or SEBI.

Questions people ask

When is NAV declared each day?

After markets close on a business day. The AMC values every holding, subtracts what the scheme owes, and divides by the units outstanding. That's why you can't see your exact price while placing the order.

Why was my NAV different from the day I invested?

Because NAV follows your money, not your click. For equity and debt funds you get the NAV of the business day the money is available to the fund before the 3 pm cut-off. A slow bank transfer pushes you to the next day.

Is a low NAV better than a high NAV?

No. A ₹15 NAV and a ₹450 NAV are equally good or bad. You simply get more units at the lower one, each worth less. What matters is the portfolio and the costs, not the number.

Does NAV include the exit load?

No. NAV is the scheme's price. If an exit load applies, it's deducted from your redemption. A 1 percent load on a ₹42 NAV means you receive ₹41.58 per unit.

Why does NAV fall when a dividend is paid?

The payout leaves the scheme, so the per-unit value drops by roughly that amount. You haven't lost anything. The money moved from the scheme into your bank account.

Do NAVs change on weekends and holidays?

Most schemes declare NAV only on business days, because markets are shut otherwise. Liquid fund schemes are the exception, as mutual funds calculate their NAV for every calendar day.

How many decimal places does NAV have?

Index funds, liquid funds and other debt funds go to 4 decimal places. Equity and balanced funds go to at least 2. The finer precision matters where daily moves are very small.

Where can I check a scheme's NAV?

On the AMC's own website and on the AMFI website, which carries data across schemes. Your account statement shows the NAV applied to each of your transactions.

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