NAV in mutual funds: why a ₹10 fund is not cheaper than a ₹500 fund
Aeterna Wealth · figures from our fund data, updated 12 Nov 2026
NAV (net asset value) is the value of one unit of a fund: everything the fund owns, minus its costs, divided by the number of units. It is worked out at the end of every business day. A ₹10 NAV is not cheaper than a ₹500 NAV: ₹10,000 buys 1,000 units of one and 20 of the other, and both grow by the same percentage if their portfolios do.
How it is worked out
- Add up the market value of everything the fund holds, plus cash.
- Subtract the fund's liabilities and the day's expenses.
- Divide by the number of units in issue.
Which NAV you get
- Equity funds: buy or sell before the 3 pm cut-off on a business day and you get that day's NAV, provided the money reaches the fund in time.
- Liquid and overnight funds have an earlier cut-off (1:30 pm).
- After the cut-off, the next business day's NAV applies.
What matters instead
- The return over time, compared with the fund's index and its peers.
- How consistently the fund has beaten its index, and how it held up in falls.
- A new fund (NFO) at ₹10 is not a bargain: it simply hasn't grown yet.
Common questions
Is a low NAV fund better to buy?
No. Returns are in percentages; the NAV level makes no difference to what you earn.
Why do Regular and Direct plans have different NAVs?
They start at the same NAV, but the Direct plan's lower cost makes it grow slightly faster, so the NAVs drift apart.
Where can I see a fund's NAV?
On AMFI's website, the fund house's site, and every fund page on our site, updated each business day.
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- Expense ratio: what it is, and why returns after it are what count
- Rolling returns: the fairest way to judge a mutual fund
- TRI: why funds must be compared with the total return index
- CAGR vs XIRR vs absolute return: which number to use
- Volatility and the Sharpe ratio: how bumpy, and was it worth it?
- Downside capture: how much of the market's fall a fund takes
- Maximum drawdown: the worst fall you would have sat through
- Active share: is your fund really active?
- STP and SWP: moving money in, and taking an income out
General information, not investment or tax advice for your situation. Mutual fund investments are subject to market risks; read all scheme-related documents carefully. Past performance does not guarantee future returns.
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