Net asset value

The value of a fund's or trust's assets less its liabilities, divided by the number of units: what one unit would be worth if everything were sold at today's prices. Indian mutual funds publish it every business day, and every purchase and redemption is done at it.

A fund holding ₹1,020 crore of investments with ₹20 crore of liabilities and 40 crore units has a net asset value of ₹25 a unit.

Net asset value is also used for property trusts and infrastructure trusts, and for holding companies. There it's estimated from valuers' reports or the market value of stakes, and the gap between it and the market price becomes the story. A property trust trading at a 15% discount to its net asset value is either cheap or telling you the valuations are stale.

Higher net asset value doesn't make a fund expensive.