Mutual Funds and Nav – A little know-how

Mutual funds can be a vital addition to your portfolio, not only in terms of diversification but also in garnering better risk adjusted returns. But first, knowing the basics is essential to get you started on your mutual fund investing journey. Mutual funds are managed by fund managers with expertise and experience in this field, and all you have to do is select the fund that best meets your financial goals depending on your risk appetite. Mutual funds come in various avatars – you could invest in bond or equity funds, money market funds or hybrid funds. But the other aspect of mutual funds that is helpful to understand is the net asset value (NAV). This is the primary indicator of the returns generated by your mutual fund investment.

So, what exactly is a NAV? And how does the principle of NAV work? Read on to find out.


Helpful information for investors: All Mutual Fund investors have to go through a one-time KYC (know your Customer) process. Investors should deal only with registered mutual funds, to be verified on SEBI website under ‘Intermediaries/ Market Infrastructure Institutions’. For redressal of your complaints, you may please visit . For more info on KYC, change in various details & redressal of complaints, visit This is an investor education and awareness initiative by Nippon India Mutual Fund.

The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The document has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. The sponsor, the Investment Manager, the Trustee or any of their directors, employees, associates or representatives (“entities & their associates”) do not assume any responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such information. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Entities & their associates including persons involved in the preparation or issuance of this material shall not be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on account of lost profits arising from the information contained in this material. Recipient alone shall be fully responsible for any decision taken on the basis of this document.