NAV (Net Asset Value) meaning

By the Autowhat AI team · Updated 2 Nov 2026

How is NAV calculated?

NAV per unit = (market value of assets − liabilities and accrued expenses) ÷ units outstanding. Assets include the securities held, cash and receivables. Liabilities include payables and expenses accrued but not yet paid. Indian mutual fund houses publish NAV for each scheme every business day, and AMFI carries the figures for all fund houses on its website. Research desks that follow NAVs and ETF prices alongside portfolio manager filings usually load them into a PMS data platform instead of checking one fund house at a time.

A worked example (illustrative figures)

Suppose an equity ETF holds shares worth ₹1,005 crore and cash of ₹5 crore, and owes ₹10 crore in payables and accrued expenses. It has 50 crore units outstanding.

• Net assets = 1,005 + 5 − 10 = ₹1,000 crore
• NAV per unit = 1,000 ÷ 50 = ₹20.00

Now the ETF's last traded price on the exchange is ₹20.30 in the same session. Premium = (20.30 − 20.00) ÷ 20.00 × 100 = 1.5%. Had it traded at ₹19.80, it would be at a 1.0% discount. These are illustrative numbers, not market data.

Why does an ETF trade at a premium or discount to NAV?

A mutual fund unit is always bought at NAV. An ETF unit trades on the exchange between buyers and sellers, so its price can drift from NAV. The usual reasons are thin trading, wide bid-ask spreads, demand moving faster than market makers can create or redeem units, and timing, since the end-of-day NAV and the last traded price may reflect different moments. Many fund houses also publish an indicative NAV (iNAV) during market hours so traders can see the gap as it forms. The ETF premium and discount guide covers this in depth, and the premium / discount calculator does the arithmetic for a price and NAV you enter.

NAV vs market price vs AUM: what is the difference?

What are the common mistakes about NAV?

• "A low NAV fund is cheaper." A ₹10 NAV and a ₹500 NAV say nothing about value. Returns depend on how the holdings move, not on the unit price.
• Comparing price and NAV from different times. A premium worked out from yesterday's NAV and today's price is mostly noise.
• Matching ETFs by name. Exchange and fund house files name the same ETF differently. Match by ISIN.
• Reading a one-day premium as a trend. A gap that persists across sessions on thin volume matters more than a single print.

How do desks track NAV and premiums for every ETF?

Following one ETF is easy. Following every listed ETF each session means joining exchange price files with NAV files, matching by ISIN, and keeping history so persistent premiums stand out. Terminal X runs this as an agent that stores price, NAV, premium or discount and traded value per session. It supplies data for research and is not investment advice; confirm any decision with a registered adviser.

Where this shows up in our work. Terminal X: Agents that collect SEBI PMR filings, PMS returns, ETF liquidity and index changes — cleaned, versioned, exported. Book a 30-minute working session with an engineer.

General guidance, current as of the date above. Figures in examples are illustrative. Rules change: confirm with your adviser or the official portal before acting. More terms in the glossary.