The Net Asset Value (NAV) of a Mutual Fund is calculated by considering the market value of all the assets held by the fund (this includes all securities held by the fund along with any cash & receivables), subtracting any liabilities (this includes any expenses & outstanding debt to creditors), and then dividing the result by the total number of outstanding units(this refers to the total MF units held by investors).
Mathematically NAV=(Market Value of Assets−Liabilities)/Total Number of Outstanding Units
To explain with an example:
Market Value of Securities + Cash: Rs 10,00,000
Total Expenses: Rs 15,000
Total Number of Outstanding Units: 10,000
The formula for NAV in rupees would be:
Substituting the values: NAV=(Market Value of Assets−Liabilities)/Total Number of Outstanding Units
NAV = (10,00,000-15,000)/10,000
Therefore, in this example, the Net Asset Value (NAV) per unit of the Mutual Fund is Rs 98.5
NAV is usually calculated once at the end of the day. SEBI mandates Mutual Funds to update the NAV by 9 PM every day which is also when you should be able to view the updated NAVs on your Dhan app.