INCOME TAX6 Sept 2026
₹10 NAV mutual fund looks cheap? Here’s why that could be a costly mistake
Many investors think a ₹10 NAV fund is cheaper than a ₹500 one. That's wrong. NAV is just the value of one unit; it doesn't decide returns. If two funds hold identical portfolios, ₹5,000 in either grows the same. New funds start at ₹10 to look attractive. So never choose a fund by NAV alone. Check strategy, portfolio, risk, costs and fund manager's record before investing.
Key Statutory Highlights
- NAV is the value of one unit of a mutual fund after deducting liabilities and dividing by total units.
- A ₹10 NAV fund is not cheaper than a ₹500 NAV fund because identical portfolios give the same returns on the same investment.
- New Fund Offers often launch at ₹10, but low NAV alone does not mean the fund is a good choice.
Actionable Advice for Taxpayers / Founders:Before investing, compare the fund's investment strategy, portfolio, risk level, costs and fund manager's track record instead of looking at NAV.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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