NAV stands for Net Asset Value. It represents the market value per share of a particular mutual fund. It is calculated by subtracting the fund's liabilities from its total asset value and then dividing by the number of outstanding shares. To determine the NAV of each fund unit, you need to gather the market value of the portfolio and divide it by the total number of current fund units.

Typically, the unit cost of mutual funds starts at Rs. 10 and increases as the assets under management grow. Consequently, the more popular a mutual fund is, the higher its NAV.

NAV is most commonly used for open-end funds, where shares are not traded between shareholders.