Net asset value (NAV) is the representation of the per share value of a mutual fund. It is the price at
which investors buy and sell mutual fund shares to a fund company. NAV can be calculated by dividing
the total value of all cash and securities in a given portfolio (minus the liabilities) by the number of
shares outstanding.
This value is computed at the end of every trading day based on the closing prices of the securities in the
portfolio. The buy and sell orders of all mutual funds are processed at the NAV on a given trading day.
The investors however get the trade price only on the following day.
The price per unit of a mutual fund can be found out by dividing the NAV by the number of outstanding
units. This makes the NAV a fairly important value to investors.
NAV is mostly used in reference to open-ended fund schemes.
There are a lot of online trading portals that offer information on mutual fund NAVs on a regular basis.
Reliance Mutual Funds is one of these that updates information on NAVs daily and also provides insights
into the history of the NAV.
