1. What is considered a good NAV for a mutual fund?

There is no specific NAV value that is considered to be good or bad. Investors should not fixate on the NAV number but instead pay attention to the fund’s performance, the quality of the assets the portfolio holds and its long-term returns.

2. Is it better to invest in a mutual fund with a low NAV?

No. A lower NAV does not make a mutual fund less expensive or better. It only defines how many units an investor will get for their investment.

3. Why do new mutual funds start with an NAV of Rs. 10?

Most mutual fund companies issue New Fund Offers with an initial NAV of Rs. 10, following an industry standard. This starting value is not an indication of the fund's future performance.

4. How often is NAV calculated?

is calculated every trading day after the stock market closes, based on the closing prices of the securities held in the fund’s portfolio.

5. Does NAV make a difference to SIP investments?

Yes, NAV determines the number of units allotted during each SIP instalment. However, long-term returns depend on the growth of the fund’s NAV over time rather than the NAV at the time of purchase.