"Net asset value," or "NAV," of an investment company is the company's total assets minus its total liabilities. For example, if an investment company has securities and other assets worth $100 million and has liabilities of $10 million, the investment company's NAV will be $90 million.

What does the NAV indicate?

Net asset value (NAV) represents a fund's per share market value. NAV is calculated by dividing the total value of all the cash and securities in a fund's portfolio, minus any liabilities, by the number of outstanding shares. The NAV calculation is important because it tells us how much one share of the fund is worth.

Is a higher or lower NAV better?

Higher NAV generally suggests that the scheme has prospered well in the past or has been around for a long time. For instance, NFOs (New Fund Offers) are generally launched at Rs. 10 per unit.