1. NAV divides scheme net assets by units outstanding

If a scheme’s net assets are ₹100 crore and it has 5 crore units, the NAV is ₹20 per unit.

Tip: NAV is a per-unit accounting value.

2. A low NAV is not automatically better

A ₹10 NAV fund is not necessarily cheaper than a ₹100 NAV fund because mutual-fund units are not companies with fixed share counts and valuation multiples.

Note: Do not choose funds because the NAV looks small.

3. Your return depends on percentage change, not starting NAV alone

If two funds earn 10%, both investor values rise roughly 10% before costs/taxes, regardless of whether the NAV started at ₹10 or ₹100.

Tip: Percentage return matters more than the number of units.

4. Transactions happen around applicable NAV rules

Purchase and redemption use the applicable NAV based on scheme rules, cut-off timing and realization of funds.

Tip: The exact applicable NAV can depend on operational cut-off rules.

5. Quick check

Fund A NAV ₹10 and Fund B NAV ₹100 both rise 10%. Which investor necessarily earned more percentage return?