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Net Asset Value (NAV), is the sum of the current value and total liabilities, divided by the number of outstanding units. An investor can track the performance of a fund's NAV.
A fund management company (AMC) declares the NAV for its schemes every business day.
This is why I will give you an example. Let's suppose that the mutual fund has issued 10 million units and has a market value of Rs 500 lakh. Then the NAV per unit is Rs50.
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