How is NAV calculated for mutual funds?

NAV (Net Asset Value) is the per-unit price of a mutual fund. It’s calculated as:
NAV = (Total Market Value of Assets – Liabilities) ÷ Total Number of Units Outstanding.
Assets include the market value of all investments held by the fund, while liabilities are expenses and management fees. NAV is calculated at the end of each trading day, so mutual fund units are priced only once daily. It reflects the current value of your investments and changes daily based on market fluctuations. NAV is important for determining how many units you get when you invest or what you receive when you redeem.