What is Net Asset Value (NAV)?
Net Asset Value (NAV) denotes the performance of a particular scheme of a Mutual Fund. NAV can be defined as the market value of all the securities (equities, bonds, money market instruments, and other securities) held by the scheme. The money collected from investors under the Mutual Fund scheme is invested in various securities in the market. Since the market value of securities changes every day, the NAV of a scheme also fluctuates on day to day basis.
The market value of all the securities (equities, bonds, money market instruments, and other securities) of a scheme is divided by the total number of units of the scheme to find out the NAV per unit of the scheme on any particular date.