Written by the Bini team · Last updated: October 2026
NAV stands for Net Asset Value. It is the value of one unit of a mutual fund, worked out by dividing the fund's net assets (assets minus liabilities) by the number of units outstanding. NAV tells you what a unit is worth, not whether the fund is a good investment.
How is NAV calculated?
NAV per unit = (Total assets − Total liabilities) ÷ Outstanding units
Here is a worked example.
| Item | Amount |
|---|---|
| Total assets of the fund | ৳ 10 crore |
| Total liabilities | ৳ 1 crore |
| Net assets | ৳ 9 crore |
| Outstanding units | 90 lakh |
| NAV per unit | ৳ 9 crore ÷ 90 lakh = ৳ 10 |
Real funds follow detailed accounting and BSEC (opens in a new tab) valuation rules but the idea is exactly this.
Why does NAV change?
NAV moves because the value of the fund's assets moves. If the assets in the portfolio rise, net assets rise and so does NAV. If they fall, NAV falls.
Income earned, expenses charged and liabilities owed also feed into the number. That makes NAV and every return calculated from it net of all expenses.
Is a lower NAV better?
No and this is one of the most common beginner mistakes.
Imagine two funds. Fund A has a NAV of ৳ 10 and Fund B has a NAV of ৳ 20. If both rise by 10%, Fund A goes to ৳ 11 and Fund B goes to ৳ 22. Your return is 10% in both cases.
The NAV is just the starting price of a unit. It isn't a discount tag. What matters is how the fund's value changes and what it costs you.
NAV vs return
NAV is a value. Return is the change in value over a period. If NAV moves from ৳ 10 to ৳ 12, the unit value is up 20%.
NAV vs market price for closed-end funds
Closed-end funds trade on the stock exchange, so they have two numbers: The NAV and the market price. They can be different.
| Fund | NAV | Market price | Gap |
|---|---|---|---|
| Example fund | ৳ 12.00 | ৳ 9.00 | 25% discount to NAV |
A discount can mean a bargain or it can mean weak demand. Compare both numbers before you buy. We cover this in open-end vs closed-end funds in Bangladesh.
What to check alongside NAV
NAV alone doesn't tell you whether a fund is a good one. We cover what to check before investing in Step 5 of how to invest in mutual funds in Bangladesh: The fund's objective, holdings, risk level, past performance, size, costs and minimum investment.
Frequently asked questions
What does NAV mean in a mutual fund?
NAV is Net Asset Value, the value of a single unit of the fund.
Where can I find a fund's NAV?
On the fund page on Bini, in the AMC's published reports and for listed closed-end funds, in the exchange's disclosures.
Does a higher NAV mean a better fund?
No. NAV only shows the value per unit. It says nothing about future returns.
Can NAV go down?
Yes. If the fund's investments lose value, NAV falls.
Is NAV the same as the price I pay?
For open-end funds, the price is based on NAV. For closed-end funds, you pay the market price on the exchange, which can differ from NAV.