Net Asset Value (NAV) — how it's computed daily

Total assets minus liabilities, divided by units outstanding. Calculated once per business day, after market close.

ProfitGuruOnline · Editorial Desk

3 min read Last reviewed 8 Jun 2026 2 primary sources

Net Asset Value (NAV) is the per-unit market value of a mutual fund scheme. Every time you buy or sell units, the transaction happens at the applicable NAV — which is a calculated number, not a market-quoted price.

The formula

NAV = (Market value of all portfolio assets − Liabilities) / Number of units outstanding

Walked through:

Market value of stocks, bonds, gold, and cash holdings, valued at closing prices on the business day.
Minus accrued liabilities — management fees, statutory levies, brokerage payable.
Divided by the total number of units outstanding at the end of that day.

When is NAV computed

NAV is calculated once per business day, typically between 7-9 PM IST. The published NAV represents the per-unit value at the close of that business day. AMCs are required to upload each scheme's NAV to AMFI by 9 PM the same day; AMFI's NAVAll.txt file is the canonical aggregator.

Funds with international holdings (FoF, overseas equity) compute NAV slightly later because they need T-1 closing prices from foreign markets.

Cut-off times and applicable NAV

SEBI cut-off rules determine which day's NAV applies to your transaction:

Liquid / Overnight (purchase): 1:30 PM cut-off. Before cut-off + funds received by AMC = previous business day's NAV. After cut-off OR funds received next day = next business day's NAV.
Other purchase: 3:00 PM cut-off. Before + funds received = same-day NAV. After OR funds received later = next-day NAV.
All redemptions: 3:00 PM cut-off. Before = same-day NAV. After = next-day NAV.

Why face value vs NAV is irrelevant

Mutual funds typically launch at a face value of ₹10 per unit. New funds therefore have NAV close to ₹10; older funds have NAVs in the hundreds or thousands. The absolute number is meaningless — it just reflects how long the fund has been running. ₹10 NAV on a new fund is not "cheaper" than ₹500 NAV on an old fund; you'd just get more units for the same money.

NAV ≠ market price

Unlike stocks, you can't buy or sell mutual fund units at a price different from NAV. The AMC is the counter-party, the NAV is the price, and the cut-off time determines which day's NAV applies. The closest analog to "market-priced" mutual funds is ETFs, which trade live on the exchange.