NAV stands for Net Asset Value, which represents the value of an investment fund. It is calculated by adding the total value of the funds assets and subtracting its liabilities, then dividing the result by the total number of outstanding shares. The NAV of a mutual fund is calculated daily based on the closing market prices of the portfolios securities. 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 NAV is important because it tells us how much one share of the fund should be worth. However, the NAV doesnt provide a performance metric for the fund, and it is relatively unimportant in gauging a funds performance. The actual market value of a fund may differ slightly from its NAV, which may represent a buying or selling opportunity. Mutual funds calculate their NAV per share daily, and that is the price you’ll pay to buy or sell shares in the fund. Unlike stocks, where the price is driven by the stock market and changes from minute-to-minute, NAVs of mutual fund schemes are declared at the end of each trading day after markets are closed.