The Net Asset Value (NAV) of a mutual fund is the price at which units of a mutual fund are bought or sold. It is the market value of the fund after deducting its liabilities and expenses. NAV is also sometimes referred to as Net Book Value or book Value. Let’s discuss its calculation in a bit more detail.
NAV indicates the market value of the units in a fund. An investor can calculate the actual increase in the value of their investment by determining the percentage increase in the mutual fund NAV. Hence, NAV gives accurate information about the performance of the mutual fund.
