what is nav in mutual funds

NAV stands for Net Asset Value, which represents the value of an investment fund and is calculated by adding the total value of the funds assets and subtracting its liabilities. In the case of mutual funds, NAV is the price at which investors buy and sell fund shares from a fund company. The NAV calculation is important because it tells us how much one share of the fund should be worth. The actual market value of a fund may differ slightly from its NAV, which may represent a buying or selling opportunity. The formula for a mutual funds NAV calculation is straightforward: NAV = (Assets - Liabilities) / Total number of outstanding shares. The NAV per unit is the market value of securities of a scheme divided by the total number of units of the scheme on any particular date. The NAVs of mutual fund schemes are declared at the end of the trading day after markets are closed, in accordance with SEBI Mutual Fund Regulations.