{"id":12221,"date":"2026-05-22T13:38:56","date_gmt":"2026-05-22T13:38:56","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/glossary\/nav-2\/"},"modified":"2026-05-22T13:38:56","modified_gmt":"2026-05-22T13:38:56","slug":"nav-2","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/nav-2\/","title":{"rendered":"NAV"},"content":{"rendered":"<p>Net Asset Value, or <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/nav\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>NAV<\/a>, is the per-unit <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/market-value\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">market value<\/a> of a <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/mutual-fund\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">mutual fund<\/a> scheme on any given day. It is calculated by taking the total market value of the scheme&#x2019;s <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/assets\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">assets<\/a>, subtracting its <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/liabilities\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">liabilities<\/a>, and dividing by the number of outstanding units. Every Indian mutual fund publishes a daily NAV after market close. This is the price at which you buy and sell units.<\/p>\n<div><strong>Key takeaways:<\/strong>\n<ul>\n<li>NAV is the per-unit value of a mutual fund scheme.<\/li>\n<li>Calculated as (Total assets &#x2212; Total liabilities) \/ Number of outstanding units.<\/li>\n<li>Published once per business day, after market close.<\/li>\n<li>Lower NAV does not mean a cheaper or better fund.<\/li>\n<li>Returns are determined by NAV growth, not NAV level.<\/li>\n<\/ul>\n<\/div>\n<h2 id=\"how-nav-is-calculated\">How NAV is calculated<\/h2>\n<p>At the end of each business day:<\/p>\n<ol>\n<li>The fund values all its holdings &#x2014; <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/stocks\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">stocks<\/a>, <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/bonds\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>bonds<\/a>, cash &mdash; at end-of-day market prices.<\/li>\n<li>Subtracts all liabilities &#x2014; outstanding management fees, redemptions due, <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/expense\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">expenses<\/a>.<\/li>\n<li>Divides the net assets by the total number of units issued.<\/li>\n<li>Publishes the result as NAV by 11 p.m. on the same business day.<\/li>\n<\/ol>\n<h2 id=\"why-nav-level-does-not-matter\">Why NAV level does not matter<\/h2>\n<p>A fund at NAV &#x20B9;10 is not cheaper or better than one at NAV &#x20B9;500. Returns come from the percentage change in NAV, not the level. A 10% rally takes &#x20B9;10 to &#x20B9;11 and &#x20B9;500 to &#x20B9;550 &#x2014; both have grown 10%. Many beginners wrongly chase low-NAV new-fund offers; this is a misunderstanding.<\/p>\n<h2 id=\"nav-vs-market-price-for-etfs\">NAV vs market price (for ETFs)<\/h2>\n<p>Open-ended mutual funds buy and sell only at NAV. Exchange-traded funds (ETFs) trade on the exchange like stocks &#x2014; their price can deviate slightly from NAV due to demand and supply during the day. The day-end NAV provides a reference; the live price reflects intraday <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/fair-value\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">fair value<\/a>.<\/p>\n<h2 id=\"nav-applied-to-your-transactions\">NAV applied to your transactions<\/h2>\n<table>\n<tr>\n<th>Order placed<\/th>\n<th>NAV applied<\/th>\n<\/tr>\n<tr>\n<td><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/equity\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Equity<\/a> scheme before 3:00 p.m. cut-off<\/td>\n<td>Same day&#x2019;s NAV<\/td>\n<\/tr>\n<tr>\n<td>Equity scheme after 3:00 p.m. cut-off<\/td>\n<td>Next business day&#x2019;s NAV<\/td>\n<\/tr>\n<tr>\n<td>Liquid funds before 1:30 p.m. cut-off<\/td>\n<td>Previous day&#x2019;s NAV (subject to fund clearing)<\/td>\n<\/tr>\n<tr>\n<td>Holidays<\/td>\n<td>Next business day&#x2019;s NAV<\/td>\n<\/tr>\n<\/table>\n<h2 id=\"common-nav-related-questions\">Common NAV-related questions<\/h2>\n<ul>\n<li>Why does the NAV not match my screen at the time I bought? Because NAV applies based on the cut-off rule, not the exact time of order.<\/li>\n<li>Does NAV include <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/dividend\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">dividend<\/a>s? Yes &#x2014; when a fund pays dividend, NAV drops by the dividend amount.<\/li>\n<li>What is the difference between growth and IDCW NAVs? Growth plans accumulate gains; IDCW plans distribute income, leading to lower NAV over time.<\/li>\n<\/ul>\n<h2 id=\"how-nav-affects-your-decisions\">How NAV affects your decisions<\/h2>\n<p>Focus on the fund&#x2019;s long-term return, <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/expense-ratio\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">expense ratio<\/a>, and <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/portfolio\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">portfolio<\/a> quality &mdash; not its NAV level. Use <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/sip\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>SIP<\/a> installments to average across NAV fluctuations. Track the fund&rsquo;s rolling returns rather than absolute NAV growth.<\/p>\n<h2 id=\"frequently-asked-questions\">Frequently asked questions<\/h2>\n<div>\n<h3 id=\"when-is-nav-updated\">When is NAV updated?<\/h3>\n<p>Daily by 11 p.m. for most equity funds; earlier for liquid funds.<\/p>\n<h3 id=\"is-a-low-nav-a-sign-of-a-cheaper-fund\">Is a low NAV a sign of a cheaper fund?<\/h3>\n<p>No. NAV level is irrelevant; only growth in NAV affects your returns.<\/p>\n<h3 id=\"how-are-taxes-calculated-on-nav\">How are <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/tax\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>tax<\/a>es calculated on NAV?<\/h3>\n<p>Taxes apply to the difference between sale NAV and purchase NAV (<a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/capital-gain\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">capital gain<\/a>s).<\/p>\n<h3 id=\"does-lemonn-show-real-time-navs\">Does Lemonn show real-time NAVs?<\/h3>\n<p>NAVs are official end-of-day prices; Lemonn shows the latest published NAV alongside historical performance.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Net Asset Value, or NAV, is the per-unit market value of a mutual fund scheme on any given day. It is calculated by taking the total market value of the scheme&#x2019;s assets, subtracting its liabilities, and dividing by the number of outstanding units. Every Indian mutual fund publishes a daily NAV after market close. This [&#x2026;]<\/p>\n","protected":false},"author":3,"featured_media":0,"menu_order":0,"template":"","meta":{"_uag_custom_page_level_css":"","footnotes":""},"class_list":["post-12221","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"uagb_featured_image_src":{"full":false,"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"web-stories-poster-portrait":false,"web-stories-publisher-logo":false,"web-stories-thumbnail":false},"uagb_author_info":{"display_name":"Team Lemonn","author_link":"https:\/\/lemonn.co.in\/blog\/author\/ashu\/"},"uagb_comment_info":0,"uagb_excerpt":"Net Asset Value, or NAV, is the per-unit market value of a mutual fund scheme on any given day. It is calculated by taking the total market value of the scheme&#x2019;s assets, subtracting its liabilities, and dividing by the number of outstanding units. Every Indian mutual fund publishes a daily NAV after market close. This&hellip;","_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/12221","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"version-history":[{"count":0,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/12221\/revisions"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=12221"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}