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Market Intelligence › Basic Terminologies
A fund's price does not change during the day — it is set once in the evening
Published by The Retail Trader · JUL 22, 2026 · Mutual Funds & AMC
A stock's price changes every second, but a mutual fund's does not. A fund's NAV is set once a day, after the market closes — and the cut-off time decides which day's NAV you get.
NAV, or net asset value, is calculated by taking the closing value of all the fund's holdings that day, subtracting expenses, and dividing by the total units. So it is a calculated number, not a traded price.
You cannot bargain on NAV. You can only decide which day's NAV your order falls into.
These timing rules matter in practice:
• An order that arrives after the cut-off is executed at the next business day's NAV.
• In many schemes you get the NAV only when the money has reached the fund, not merely when the order is placed.
• Orders placed on holidays and weekends go through on the next working day.
• The same cut-off logic applies to redemption, in the opposite direction.
A small or large NAV number does not mean cheap or expensive. Of two funds, the one with a NAV of 15 is not cheaper than the one at 350 — returns come in percentage terms, and the absolute NAV number tells you nothing about that.
This article is for education only — it is not a buy or sell recommendation, makes no claim of guaranteed returns, and is not advisory. Rules, rates and mechanics are changed from time to time by the exchanges, SEBI and RBI, so verify every number yourself with your broker or an official source.