New Delhi, Feb. 19 -- NAV is a significant parameter or indicator for mutual funds. It merely represents the unit price of a scheme of a fund. It is calculated by reducing the liabilities of a fund from its assets and then dividing by outstanding units.

NAV reflects the market value of investment of a fund and is a significant one to be aware of for sound investment decisions.

Net Asset Value (NAV) is the unit price of a mutual fund scheme, calculated by subtracting the total liabilities of the fund from its total assets and then dividing that by the total units outstanding.

NAV = (Total Assets - Total Liabilities) / Total Units Outstanding.

i.e., the total market value of all investments purchased in the mutual fund minus debt or lia...