NAV (Net Asset Value)

NAV is the fund's total assets minus its liabilities, divided by the number of outstanding units. SEBI requires AMCs to compute and publish NAV by the end of every business day. When you buy or redeem mutual fund units before the cut-off (1.30 pm for liquid funds, 3 pm for equity), you transact at that day's NAV. A high NAV is not 'expensive' and a low NAV is not 'cheap'; the NAV reflects how long the fund has been running, not its quality.