One of the most common mistakes investors make is thinking:
βThis fund has a βΉ10 NAV, so it is cheaper than a fund with a βΉ500 NAV.β
β Not true.
NAV is simply the value of one unit of a mutual fund.
It does not tell you whether the fund is cheap or expensive.
Imagine two funds investing in the same portfolio:
πΉ Fund A β NAV βΉ10
πΉ Fund B β NAV βΉ500
If both portfolios grow by 10%, both investors earn 10%.
So, don’t select a mutual fund because its NAV looks low.
Instead, look at:
β
What the fund invests in
β
The investment strategy
β
Fund manager’s approach
β
Risk level
β
Long-term consistency
β
Whether it suits your financial goals
π‘ Remember:
A βΉ10 NAV is not a bargain.
A βΉ500 NAV is not expensive.
In mutual funds, the number of units you own matters less than how the underlying investments perform.
Invest based on VALUE, not just NAV.
RaVi – FundWallet
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The views expressed here are for information purposes only and should not be construed as a recommendation or investment advice. While the author is a MBA Finance graduate, with nearly 25 years of experience in financial markets, this content is intended to share general insights and does not constitute financial guidance. Fund Wallet is a AMFI registered Distributor of Mutual Fund with ARN-111231. Mutual fund investments are subject to Market risk.


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