The world of mutual fund gets discussed mostly on performance returns. But, one factor that tells the story of returns is the net asset value or NAV. When you invest in any mutual fund, you are allotted units at a certain price. This price, measured per unit, is called the NAV or the Net Asset. Just the way a bond or a share is sold at a price, a mutual fund is bought and sold at its NAV. The NAV is arrived at by dividing the fund’s net assets by the number of outstanding units.