What is the NAV of a Mutual Fund? Is investing at par better than investing at a higher NAV?
The Net Asset Value (NAV) of a fund is the value of underlying assets of each unit of a mutual fund. Thus even if you buy less units of a mutual fund at higher NAV, it is the same as buying more units at a lower NAV, since the total value of the underlying assets is the same i.e. equivalent to your investment amount. The appreciation/loss of this invested amount is divided equally amongst the number of units owned by the investor.
