THIS WEEK’S MYTH: “ A fund with a higher NAV is more expensive — I should pick the one with a lower NAV.”
This myth leads investors to pick weaker funds just because the number looks smaller. NAV is not a price tag.
THE TRUTH: ** NAV is just the current value of the fund’s units — not a measure of how cheap or expensive it is.**
 What people think |
 What actually works |
|---|---|
| Markets are down, I should pause my SIP and wait for them to recover. | Keep the SIP running. Dips = more units = bigger gains when markets recover. |
Rahul picked a new fund with NAV ₹12 over a seasoned fund with NAV ₹450 — thinking he was getting a “better deal.” Priya went with the fund that had a 15-year track record of consistent 14% CAGR. Five years later, Priya’s “expensive” fund had massively outperformed. Rahul learned the hard way — NAV is not a price tag.
Have you ever chosen a fund based on its NAV?
- Yes, and I regret it
- Yes, worked out fine
- Never — I look at returns
- Didn’t know this!
Previously Busted: MF Myth Mondays - #3