One of the most common mistakes investors make is thinking:
“This fund has a ₹10 NAV, so it is cheaper than a fund with a ₹500 NAV.”
❌ 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:
🔹 Fund A — NAV ₹10
🔹 Fund B — NAV ₹500
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:
✅ What the fund invests in
✅ The investment strategy
✅ Fund manager’s approach
✅ Risk level
✅ Long-term consistency
✅ Whether it suits your financial goals
💡 Remember:
A ₹10 NAV is not a bargain.
A ₹500 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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