<h1>Understanding Net Asset Value (NAV) in Mutual Funds and Its Role in Investment Decisions</h1> The text explains the concept of Net Asset Value (NAV) in mutual funds, defining it as the per-unit market value calculated by subtracting liabilities from total assets and dividing by outstanding units. NAV determines the price at which investors buy or redeem units and fluctuates daily based on market conditions. It clarifies that NAV alone does not indicate a fund's performance or returns; rather, investors should consider historical returns, consistency, and portfolio composition. The role of NAV in Systematic Investment Plans (SIPs) is discussed, highlighting rupee cost averaging benefits. The text also differentiates NAV behavior across equity, debt, and liquid funds, emphasizing the importance of understanding fund risk profiles. A disclaimer notes that the information is for educational purposes only, not financial advice, and investors should consult advisors before making decisions.