Neutral impactStocks
₹10 NAV mutual fund looks cheap? Here’s why that could be a costly mistake
Mint 1 hr ago·6 Sept 2026, 11:56 am
Investors often assume a mutual fund with a Net Asset Value (NAV) of ₹10 is cheaper than one priced at ₹50. However, NAV is simply the price of one unit of the fund and does not reflect its past performance or future potential. A fund with a high NAV may have delivered superior returns over time, while a low-NAV fund might be struggling. Therefore, focusing solely on the NAV price can lead to a costly mistake.
For investors, the key is to look beyond the unit price and evaluate the fund's historical returns, expense ratio, and the track record of its fund manager. Comparing funds within the same category based on these metrics provides a clearer picture of value. Always research the underlying assets and strategy before investing, rather than relying on the NAV number alone.
Key takeaways
- Category: Stocks.
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